Airline activity in Asia is picking up momentum as the region continues to ease travel restrictions related to Covid-19, and the outlook for the region looks even brighter, according to JPMorgan. This is after China announced last week that it would reduce quarantine time for international travellers. In a Nov. 11 note, JPMorgan said it was optimistic for the region’s airline industry, which it said could recover to around two-thirds of pre-pandemic levels by the end of the year. year, with momentum extending to 2023. “Asian countries including Japan, Thailand and other ASEAN countries are in a race to revive inbound tourism,” the bank said. He added that the uncertain economic outlook has yet to eat away at leisure travel spending – with the International Air Transport Association continuing to see strong international air travel bookings going forward. “Given the strong visibility of forward bookings and the additional upside resulting from the final stage of reopening in parts of the region, we remain positive on the airline and airport sectors in Asia,” said JPMorgan. . Although China’s domestic travel continues to be compromised by Covid outbreaks and lockdowns, its international flight activity has doubled since June and is expected to grow 106% year-over-year from winter to spring. , the bank said. The bank’s main choices for playing in the sector are Beijing International Airport and Shanghai Airport. Airports of Thailand is another title nominated by JPMorgan. Tourism is the backbone of Thailand’s economy and it is on track to beat its target of 10 million foreign tourist arrivals for 2022, the bank said. Tourist arrivals reached 7.56 million at the end of October, and the country is expected to receive 3 million more visitors for the rest of 2022. The airlines pick Singapore Airlines from JPMorgan’s list. The country’s flag carrier posted record second-quarter revenue and bookings are expected to remain strong through the Lunar New Year holiday in late January, according to Reuters. Shares of the airline have jumped nearly 10% since the start of the year. Other airline stocks that are among JPMorgan’s picks include Air China and Qantas Airways. The Japanese government has an annual target of 60 million foreign visitors per year by 2030, while also announcing its goal to rebound inbound tourism to pre-pandemic levels by 2025, JPMorgan noted. “Japan is looking to revitalize the tourism sector with upcoming international events to be held in Japan, including Expo Osaka 2025 and the World Athletics Championships in Tokyo, poised to boost the number of visitors,” he said. said JPMorgan. Other stocks that could take off Besides airport and airline stocks, China’s reopening would also benefit the hotel, restaurant and leisure sectors, according to a Nov. 6 Goldman Sachs note. These stocks include casino operators Galaxy Entertainment and Sands China, food chain Yum China, as well as Trip.com. – CNBC’s Zavier Ong contributed to this report.