Jakarta, Indonesia Sentinel — At least seven global airlines have pulled back their operations to China, according to travel news site Skift. Over the past four months, several major carriers have either exited the market or scaled back services.
Virgin Atlantic and Scandinavian Airlines have fully withdrawn from China, with Polish carrier LOT and Australia’s Qantas following suit. Other airlines, such as Germany’s Lufthansa, Britain’s British Airways, and Finland’s Finnair, have reduced their flight hours or opted for smaller fleets on Chinese routes.
The primary reason for this downsizing appears to be low demand and high operational costs, explained John Grant, chief analyst at flight monitoring company OAG. Demand remains sluggish, largely due to China’s economic challenges, which have stifled outbound travel and weakened foreign interest in traveling to China.
“Demand for inbound and outbound travel from China is another major issue,” Grant noted, “as the country’s economic struggles limit outbound travel, while international interest in visiting China has also waned.”
Before the pandemic in 2019, China welcomed around 49.1 million visitors. However, in 2024, only about 17.25 million foreign travelers have arrived as of July. This significant decrease is affecting both international and domestic carriers, leaving Chinese airlines on a long road to recovery. Despite some resilience, China’s largest airlines reported a collective $4.8 billion loss in 2022, followed by a $420 million loss in 2023, underscoring the industry’s challenging path forward.
Additionally, rising operational costs stem from the geopolitical impact of the Russia-Ukraine conflict. With Russia’s airspace closed to European and American airlines, carriers from these regions must take longer, more fuel-intensive routes to reach Asia. This not only raises fuel costs but also requires four-person crew rotations, adding further expense compared to the standard two- or three-person teams on shorter flights.
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Interestingly, Chinese airlines are not subject to the Russian airspace restriction, allowing them to maintain shorter, more cost-effective routes to Europe. As a result, Chinese airlines now operate 82% of all flights between China and Europe this winter, up from 56% pre-pandemic. This is despite ongoing low demand, with airlines eager to regain a sense of pre-pandemic normalcy.
This winter alone, Chinese airlines plan to open around 18 new routes to Europe, despite low demand. As Grant highlighted, “It’s insane—there’s no real demand.”
(Becky)
