CHINA’S reopening to international travel could propel global air traffic to pre-pandemic levels as soon as June, a leading aircraft-lending firm predicted.

Avolon, the world’s second-largest jet lessor, said on Monday (Jan 16) that the aviation sector was “set to thrive in 2023”, with Asia driving the rebound after Europe and North America did so last year. It added that the recovery would be “helped by the recent reopening in China”.

Aircraft-leasing executives are gathering in Dublin this week for in-person conferences, after a two-year disruption due to Covid-19. Lessors expanded their role during the pandemic as cash-strapped airlines tried to bolster their finances through measures such as the sale and leasebacks of new plans.

Avolon predicted lease rates for used aircraft to increase as demand rebounds and manufacturers such as Airbus and Boeing struggle to ramp up production amid supply-chain constraints.

The lessor predicted a 35 per cent jump in hiring costs for the original version of the Airbus A330, among other ageing wide-body models, as long-haul markets fully reopen.

In early December, the International Air Transport Association estimated that the airline industry would achieve its first post-pandemic profit this year, largely on the back of a travel rebound in the US. The group made the prediction before China loosened its zero-Covid rules and began opening more for international travel. BLOOMBERG

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