(Yicai Global) March 3 -- China's airlines are offering tickets for a fraction of their regular price in a desperate attempt to generate cash flow after the civil aviation sector last month lost, on a conservative estimate, over CNY10 billion (USD1.4 billion) due to low passenger counts amid the coronavirus epidemic, according to industry insiders.

"Airlines are expected to lose around CNY15 billion in February, more than half of the industry's total profit last year," Lin Zhijie, a civil aviation industry insider, told Yicai Global

Large airlines are bleeding CNY100 million (USD14.3 million) a day and medium-sized ones tens of millions of yuan, as the number of travelers slows to a trickle amid strict travel bans imposed to control the spread of the deadly virus. Airlines have no choice but to offer substantial discounts to attract income despite operating at a heavy loss.

One-way tickets from Shanghai to Chengdu, a city 1,000 kilometers from Sichuan province, are being sold for 0.3 percent of their regular price at CNY69 (USD9.88) excluding taxes, on online travel sites such as Qunar, part of China's travel booking giant Trip.Com. And it will cost just CNY79 to reach the popular beach destination of Sanya, 2,000 km from Shanghai.

Revenue is expected to plunge by CNY37 billion in February from a year earlier and by CNY35 billion this month, according to a conservative forecast made by Qiu Lianzhong, visiting professor at the Civil Aviation Management Institute of China. The epidemic is likely to cost the industry almost CNY100 billion if it continues into next month and May, he added.

If operations do not return to normal by the end of next month, this could bring an end to 11 consecutive years of growth and profit, Lin said. The virus' impact on the sector is much bigger than during the 2003 outbreak of Severe Acute Respiratory Syndrome, or SARS, which was quickly brought under control, he added.

Most journeys are one-way, Lin said. As companies reopen for business after the extended Chinese New Year break, employees are flying back to work. However, passenger flows remain predominantly city bound and return flights have a low occupancy, he added.

While the number of passengers increased recently, the number of flights on Feb. 26 was still just one quarter that of Jan. 19 before the lockdowns began. The slowest day was Feb. 13 when the same number of flights were taken as in 2001, according to the aviation data platform VariFlight.

The recent rebound has been driven by the need to return to work and can last only for a short time, Qiu said. Demand is likely to fall again, and it is too early to say if there will be an upturn in the market or if it will remain in the doldrums, he added.

Editors: Tang Shihua, Kim Taylor