China’s three largest carriers — Air China, China Eastern Airlines and China Southern Airlines — are expected to see losses narrow in the second quarter helped by strong domestic traffic recovery and a flat Chinese Yuan against the US dollar. An HSBC Global Research report into the Chinese airline industry adds that the carriers’ losses could continue to narrow into Q3, even leading to a likely breakeven for the quarter ending 30 September. It comes after the ‘Big Three’ posted heavy losses in the first quarter, as China was the first country hit by the coronavirus pandemic - racking up collective operating losses of over CNY20b ($2.9b) between them for the three months ending 30 March 2020. The carriers have yet to release their financial results for the six months ended 30 June. They have, however, previously warned of substantial losses for the period, amid a collapse in travel demand due to global travel restrictions imposed to curb the pandemic. Traffic levels among the carriers though have been improving month-on-month. The report estimates the three carriers’ combined losses will be about 21% lower quarter on quarter, with China Southern and China Eastern expected to perform better than Air China in their respective quarterly financial results. This is because of Air China’s “exposure to the highly competitive Beijing market and [its] stake in loss-making Cathay Pacific”, the researchers add. <br/>
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Russian authorities may this week announce the resumption of international flights to France, Hungary, Malta, Cyprus, Jordan, Egypt and China’s Shanghai, the Izvestia newspaper cited unnamed airport and airline sources as saying on Monday. Russia grounded international commercial flights during the coronavirus lockdown earlier this year and has so far only resumed flights to London, Turkey, Tanzania and Switzerland. Russia has confirmed the world’s fourth largest tally of coronavirus cases. <br/>
Manchester airport is to temporarily close one of its terminals again from next month in a further sign of the slower-than-hoped-for pick-up in travel demand. The airport operated with just Terminal 1 open during the height of the pandemic before reopening Terminal 3 from the start of July and Terminal 2 later that month, as airlines began restoring their networks. It will now close Terminal 2 again until further notice. Manchester airport managing director Karen Smart says: “Having re-opened Terminals Two and Three in July, we have continued to monitor the travel patterns of our airlines and passengers, in order to adapt our operations accordingly. With that in mind, we have taken the decision to close Terminal Two again from 2 September.”<br/>