(Yicai Global) Jan. 9 -- The Civil Aviation Administration of China said it aims to break even this year after losses piled up in recent years because of the pandemic.

The CAAC targets revenue of about 75 percent of the pre-pandemic level in the 12 months, Director General Song Zhiyong said at the 2023 National Civil Aviation Conference held on Jan. 6.

The airline industry lost CNY216 billion (USD32 billion) last year, more than in the previous two years combined, with the asset-liability ratio of eight carriers exceeding 100 percent, Song said.

Daily flights were less than 3,000 at the lowest point last year, about 17.8 percent of the level before Covid-19, while total transport turnover and passenger traffic were less than half of that in 2019, he noted.

Prior to the pandemic, the industry was profitable for 11 consecutive years. But since the start of Covid-19, the total loss at Chinese airlines is thought to run to about CNY400 billion.

With China’s epidemic prevention and control policy adjusted, the flow of passengers and cargo will likely recover, Song predicted, adding that the economy is also expected to rebound.

For the Spring Festival travel rush from Jan. 7 to Feb. 15, airlines have increased flight numbers to around pre-pandemic levels. China Southern Airlines said it plans to operate over 100,000 flights in the period, the same as in 2019. Spring Airlines will likely have 14,000 flights, compared with 15,000 in 2019.

The civil aviation industry is expected to pick up markedly over the Spring Festival travel rush period, but demand may fluctuate afterward because of Covid-19, with overcapacity likely to persist in the first half, industry insider Lin Zhijie told Yicai Global.

During the New Year’s holiday, the industry also showed signs of recovery. The number of passenger flights to and from Ningbo, Hangzhou, and Chengdu exceeded that of a year earlier, data from Flight Master showed. Flights between Chengdu and Sanya recovered to over 90 percent of the pre-pandemic level in the period.

Editors: Shi Yi, Futura Costaglione