Malaysia-based long-haul budget airline AirAsia X has not been able to reach the pre-pandemic percentage of seats filled level of 90% on its China routes, with tickets only filling up half of an airplane's seats. This demonstrates the challenges of the second-largest aviation market as it begins to open up to other nations.

Benyamin Ismail, AirAsia's chief executive officer, said in an interview on Wednesday that,

"Sales haven't been off the roof, a lot of people are still uncertain about the requirements of the Chinese coming back in to China, whether you need to be quarantined. Even though they say they are open, we don't know if you have COVID, you'd have to stay at a center or not."

After three years of strict isolation due to the COVID prevention policy, China suddenly lifted its flight restrictions and began to open its borders in January. This swift shift caught many embassies and consulates in China off guard, resulting in them being understaffed and unable to prepare adequately. Consequently, Chinese executives have had to wait six to eight weeks to receive business visas to travel to Europe.

Benyamin also revealed that AirAsia X is planning to begin flights to Guangzhou, Shanghai, and Chengdu this month, with services to Beijing commencing around April. He mentioned that outbound travel from Malaysia to China has been severely underperforming due to the COVID testing requirements and a complex visa process.

A profit with half a fleet

AirAsia X reported a profit of RM153 million (34.5 million US $) for the three months ending in December, with the year-end travel season aiding the result. This news prompted a surge in company shares, which reached the highest level since October 2021 on Wednesday, increasing by 40%.

Benyamin explained that the airline had reduced its order of Airbus A330neos and A321XLRs during the pandemic yet is still committed to taking delivery of the 15 A330neos and 20 A321XLRs. The larger version of the A321 family is intended to be used in smaller cities in China and India. It is anticipated to expand the airline's network rather than merely replace older planes.

The world is delighted to welcome booming Chinese tourists

On the other hand, compared to the number of travelers in China, which did not reach expectations, the number of outbound Chinese tourists is surging.

"Welcome to Thailand!" Deputy Prime Minister and Minister of Public Health Anutin, Thailand's Minister of Transport Sasaeng, and Thailand's Minister of Tourism and Sports Piap warmly welcomed the Chinese tourists who had just arrived on the 9th and presented them with exquisite gifts.

China is Thailand's largest source of tourists. The Thailand Tourism Authority said that the return of Chinese tourists would further boost Thailand's tourism industry. It is estimated that 300,000 Chinese tourists will visit Thailand in the first quarter of this year, and 5 million will visit Thailand the whole year.

The AP reported that Thailand, Indonesia, and other Asian tourist hotspots have decided not to impose any restrictions on Chinese tourists.

During this year's Spring Festival, overseas tourist destinations will welcome a large number of Chinese tourists traveling abroad. Data shows that the orders for overseas travel during the seven-day Spring Festival increased by 540% compared with the same period in 2022, and the average cost of orders increased by 32% year-on-year. Among them, the orders for travel to Melbourne, Australia, during the Spring Festival increased by more than 50 times year-on-year, and the orders for travel to Bangkok, Thailand, increased by more than ten times.

Source: The Edge Markets