Western Airlines cuts flights to China amid low demand, high operating costs
Date
8/20/2024 9:12:47 AM
(MENAFN) Western airlines are increasingly scaling back their operations to China, driven by a combination of diminished demand and the high cost of navigating Russian airspace, which hampers their competitive edge against local carriers. British Airways has announced that it will suspend its flights between London and Beijing starting in October. This decision follows Virgin Atlantic's recent withdrawal of its sole service to Shanghai. The move reflects a broader trend among major airlines, indicating a shift in their approach towards the Chinese market amidst ongoing economic and geopolitical challenges.
Australian airline Qantas, although not impacted by the Russian airspace restrictions, also plans to reduce its flights from Sydney to Shanghai. Qantas cited low passenger numbers, with some flights operating at only half capacity, as a primary reason for the cutback. This retrenchment underscores the broader decline in interest and profitability in the Chinese market for Western airlines, which previously viewed China as a burgeoning opportunity due to its expanding economy and increasing tourist influx.
The COVID-19 pandemic had a severe impact on international travel, leading to a significant reduction in flight operations. Despite the gradual reopening of borders in 2023, airlines are now facing renewed challenges. British Airways, which had deemed the Beijing route as crucial upon its return last year, has had to make adjustments due to ongoing low demand. The airline also reduced its flights to Hong Kong and continues to serve Shanghai but at a reduced frequency. According to a report reviewed by Sky News Arabia, China's air travel market has been among the slowest to recover, with international travel demand remaining significantly below pre-pandemic levels.
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