Chinese Airlines Strengthen Positions on International Routes, Pushing Out Foreign Competitors

Chinese airlines are actively expanding their presence on international routes, capturing an increasing share of the market as foreign carriers withdraw from the country. According to industry data, foreign airlines face several challenges that hinder their activity in the Chinese market, including low demand for travel to China, rising costs, and extended flight times due to the need to avoid Russian airspace.

For instance, British Airways and Qantas have already reduced their flights to China. British Airways announced a year-long suspension of flights from London to Beijing, citing commercial reasons. Additionally, last month, the airline ceased one of its two daily London-Hong Kong flights for the same period. Qantas also stopped flights from Sydney to Shanghai in July, citing low demand and half-empty planes.

Since the conflict in Ukraine began in 2022, Chinese carriers have continued to use shorter northern routes to Europe and North America through Russia's vast airspace. Meanwhile, airlines from Europe, the US, and other countries avoid flying over Russia for various reasons—either due to bans imposed by Moscow and their own governments or safety concerns. This has created additional competitive advantages for Chinese airlines, allowing them to reduce costs by 30% compared to Western competitors.

As a result, although the number of flights to China in July this year was a quarter less than before the pandemic, local carriers like China Eastern Airlines have restored up to 90% of their international flights. This indicates that it is foreign airlines that have scaled back their presence, while Chinese carriers continue to strengthen their positions on the international stage.