An airplane from China Eastern Airlines at the Beijing Daxing International Airport Photo: Courtesy of China Eastern Airlines

 

China's airline-related shares on Friday rose collectively as China has taken a cautious yet significant step to loosen restrictions on international flights put in place to stem the spread of the novel coronavirus.

As of noon on Friday, China Eastern Airlines' share price has increased 6.15 percent to 4.49 yuan ($0.63), Air China shares are up 5.36 percent to 7.08 yuan in Shanghai stock market, and Beijing Capital International Airport Co's shares have risen 8.84 percent to HK$5.54 ($0.71) in the Hong Kong Special Administrative Region.

According to the rules released by the Civil Aviation Administration of China (CAAC) on Thursday morning, all international carriers that were not previously allowed to resume operations can select one of 37 designated Chinese cities and resume one flight each week to that city from Monday.

Aviation is one of the industries hit hardest by the coronavirus pandemic as countries and regions have issued lockdowns, with both personal and business travel drastically cut across the world.

Total revenues in the global airline industry were forecast to drop 55 percent year-on-year in 2020, media reported, citing data from the International Air Transport Association.