China's domestic air traffic recovery faltering due to zero-COVID policy

China's domestic air traffic, once the world's envy after a fast rebound during the pandemic, is faltering due to a zero-COVID policy that has led to tighter travel rules in Beijing and weaker consumer confidence after repeated small outbreaks. The outlook for Q4, normally a popular time for southerners to head north for winter breaks and northerners to head south for warmer weather, is dimming due to COVID-19 related disruptions at a time when international traffic is negligible. "It's very exhausting that the virus somehow always manages to make a comeback," said Elaine Shen, a Shanghai resident who had to put off her domestic travel plans for the first time since the start of the pandemic due to cases in Shanghai. Domestic capacity at the country's three biggest airlines reached around 115% of pre-COVID levels in April but by October had fallen to around 77% due to outbreaks with lower peaks after each rebound, HSBC data shows. That contrasts with a steadier US domestic recovery. In mid-November, the situation worsened when the city of Beijing announced that travellers from any Chinese city that had reported even a single COVID case within the past 14 days would be restricted from entering the capital, which is being protected ahead of the 2022 Winter Olympics. Hangzhou, the capital of Zhejiang province, on Tuesday slashed its number of flights to Beijing to just one per day due to two local cases. Air China, China Eastern Airlines and China Southern Airlines posted a combined loss of nearly 8b yuan ($1.25b) in Q3.<br/>