Air traffic back to normal by June on China rebound

Bloomberg

China’s reopening to international travel could propel global air traffic to pre-pandemic levels as soon as June, one of the world’s leading
aircraft-leading firms predicts.
Avolon Holdings, the world’s second-largest jet lessor, said on Monday that the aviation sector “is set to thrive in 2023,” with Asia driving the rebound after Europe and North America did so last year, “helped by the
recent reopening in China.”
Aircraft leasing executives are gathering in Dublin this week for in-person conferences after two years of disruption from Covid-19. Lessors expanded their role during the pandemic as cash-strapped airlines sought to bolster finances through measures such as sale and leasebacks of new plans.
Speaking at the event in Dublin, Darren Hulst, Boeing Co.’s vice president for commercial marketing, said passenger and traffic recovery in 2023 “is really kind of the final piece of the puzzle, because China and Asia are so important to global traffic.”
“It’s amazing to see how resilient the traffic is, and we’ll continue to watch it to 2023,” Hulst said.
Avolon predicted lease rates for used aircraft will increase as demand rebounds while manufacturers Airbus SE and Boeing struggle to ramp up production amid supply-chain constraints.
That could include aging wide-body models such as the original version of the Airbus A330, for which Avolon predicts a 35% jump in hire costs as long-haul markets fully
reopen.
The International Air Transport Association (IATA) said in early December that the airline industry would achieve its first post-pandemic profit this year, mainly bolstered by a travel rebound in the US. The group made the prediction before China loosened its zero-Covid rules and began opening more for international travel.