FT: Western airlines cut China routes amid rising costs, falling demand

Western airlines are significantly scaling back their flights to China, reflecting a combination of low demand and the high costs associated with navigating around Russian airspace.

This shift highlights a growing challenge for international carriers trying to compete with Chinese airlines amid a backdrop of slowing economic growth in China and heightened geopolitical tensions, Caliber.Az reports, citing The Financial Times (FT).

British Airways has announced it will suspend its flights between London and Beijing starting in October. This move follows Virgin Atlantic's recent decision to cease its Shanghai route, which was its sole connection to China. Additionally, Qantas, although not directly impacted by the Russian airspace restrictions, plans to cut its Sydney-to-Shanghai route due to persistently low passenger numbers.

The reduction in international flights to China has been striking. According to industry data provider OAG, the number of flights by European and North American carriers during this summer season has dropped by over 60% from the peak of more than 13,000 flights in 2018. In contrast, Chinese airlines have only reduced their international flights by 30% from their 2019 peak and now operate more than twice as many flights to China as their Western counterparts.

The US government has recently agreed to increase the number of direct round-trip flights between the US and China from 35 to 50 per week. While this is a step forward, it remains a fraction of the 325 flights per week that were operational before the pandemic. US airlines have advocated for keeping the cap at its current level, citing difficulties in competing with Chinese carriers.