(Yicai Global) Aug. 4 -- Shares in China’s three biggest carriers Air China, China Eastern Airlines and China Southern Airlines all dropped today after the aviation authority said that all customers who bought airline tickets for travel this month can be reimbursed free of charge as the country grapples with a fresh outbreak of the novel coronavirus.

Air China’s share price [SHA:601111] closed down 1.68 percent at CNY6.42 (USD1), China Eastern [SHA:600115] dipped 1.35 percent to finish at CNY4.40 and China Southern [SHA:600029] fell 1.13 percent to end the day at CNY5.23.

Customers can enjoy free refunds for August flights as part of measures to help prevent the spread of the pandemic, the Civil Aviation Administration of China said yesterday.

The free refund policy, together with the local governments calling on people not to travel as the outbreak spirals, will have a big impact on the travel sector in the second half, civil aviation industry insider Lin Zhijie told Yicai Global. The summer is normally a peak season for travel but the resurgence of the Covid-19 pandemic has put an early end to it, and will make it harder for carriers to recoup their losses in the second half, he added.

Over 300 cases of Covid-19 have been detected in 12 cities, including Beijing, since the outbreak started at an airport in Nanjing, eastern Jiangsu province on July 20.

Editor: Kim Taylor