Danny Lee and Jinshan Hong of Bloomberg report that a flood of cheap Chinese air fares has created profit hurdles for other carriers. They write:
Back in 2019, China’s massive market for international air travel was roughly split between native carriers and their better-known rivals dotted across the globe. Not anymore.
After five tumultuous years, the mainland’s largest airlines have brushed past their competitors to seize the lion’s share of air traffic to the world’s second-biggest economy.
China Southern Airlines, China Eastern Airlines and Air China have rapidly rebuilt their foreign networks from Covid-era lows, spurred on by a government eager to kickstart the economy and burnish Beijing’s global standing. This year, Chinese carriers are expected to supply 63% of the seats on flights to the mainland — an about 10-point increase from 2019, based on scheduled capacity tracked by Cirium. […]
Chinese airlines this year have brought back 89% of the international capacity that existed in 2019, according to Cirium.
They have also become more aggressive with pricing, said Jonathan Kao, managing director for Greater China and Japan at BCD Travel agency. “When you have additional capacity at a low price, that is where the foreign carriers struggle.” […]
Alex Faulkner, a retired British academic, recently tried Air China for a flight to Shanghai, transfering to Xiamen to see his wife, who is working in the coastal city. He said he was swayed by better departure and arrival times, as well as a faster flight and a cheaper price on the longest leg.
While he had no qualms about flying with Air China, the food wasn’t as good, and inflight entertainment was “not what a European or American flier would expect,” Faulkner said.
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