Chinese State-Owned Airlines Join Price War In National Mission

2025-06-19 10:06:42

(MENAFN- Asia Times) Chinese state-owned airlines have joined an intensifying price war, although unwillingly, amid challenges including local passengers' weakening spending power and rising market competition.

Air China, Southern Airlines and Eastern Airlines have been facing huge losses for five years since the Covid-19 pandemic broke out in early 2020.

Although China canceled all epidemic rules in early 2023, the three firms still recorded net losses in the past two years. They carried more passengers last year than in 2023, but had to lower air ticket prices due to rising competition from budget airlines and China State Railway Group, the country's high-speed train operator.

The price war is intensifying this year. Many Chinese airlines now offer domestic round-trip tickets at about 200 to 300 yuan (US$28 to US$42), as it is a low season before the summer holidays.

Round-trip tickets to remote cities are 80- 90% off, while those to key cities like Beijing are 40-50% off. Budget airlines such as Spring Airlines and Juneyao Air are growing fast in this price war.

Huaqiu, a unit of the People's Daily, reported in late May that Chinese airlines have started offering significant discounts to customers. For example, a ticket for a round trip between Chengdu and Kunming costs only 222 yuan, and between Chengdu and Haikou, it costs 237 yuan. Kunming and Haikou are famous for their natural attractions.

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