FRENCH airport operator ADP on Thursday (Feb 15) said it does not expect Chinese traffic to fully recover to pre-pandemic levels this year, citing subdued demand and sluggish economic growth in the world’s second biggest economy.
Industry hopes that Chinese travel demand would drive recovery in long-haul flights have cooled down amid China’s property market crisis and slowing economic growth.
“We will still not expect full recovery in ‘24, notably because we have a constraint on demand,” said CEO Augustin de Romanet in a call with investors.
He pointed to inflated prices of hotel rooms and travel packages, coupled with an unfavourable macroeconomic environment affecting travellers from China.
De Romanet said the company expects Chinese traffic to reach 65 per cent of 2019 levels in the summer season, starting in April, compared to 50 to 55 per cent currently. He added a full recovery would be possible perhaps in 2025, but more likely in 2026.
Travellers from China amounted to 0.7 per cent of Paris airports’ traffic during the fourth quarter of 2023, at 28.5 per cent of 2019 levels, ADP said.
The group, which operates Paris’ two main airports, said on Wednesday after market closed that it targeted annual growth of above 4 per cent in earnings before interest, taxes, depreciation, and amortisation (Ebitda) in 2024, and above 7 per cent in 2025.
Last year’s overall group traffic reached 98.7 per cent of 2019 levels, before Covid-related travel restrictions, and was at 92.3 per cent of pre-pandemic levels for its Paris-region airports.
Shares in ADP were up 2.1 per cent at 1141 GMT. REUTERS
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