China to give cash subsidies to airlines for 2 months

China's finance ministry said on Thursday that it would offer subsidies to Chinese airlines from May 21 to July 20 to help carriers weather the coronavirus-induced downturn and higher oil prices.

Cash support will only be provided when average daily numbers of domestic flights per week are lower or equal to 4,500 flights and when the average load factors are lower than 75 percent, the ministry said on its website.

The maximum grant would be 24,000 yuan (US$3,574) per hour to the loss-making flights, the ministry added.

Domestic air traffic has plunged because of lockdowns in Shanghai and surrounding cities. Shanghai-based China Eastern said passenger numbers collapsed 90.7 percent in April year on year, while Shanghai International Airport saw passenger numbers down 98.9 percent in the same period.

Last year, China's aviation industry reported a net loss of 84.25 billion yuan, compared with 102.96 billion yuan in the red for 2020.