Major airlines are retreating from China due to low demand and rising operational costs. Consequently, this trend has prompted some carriers to withdraw entirely from the market. The situation worsens as the closure of Russian airspace forces airlines to fly longer routes to Asia, resulting in even higher operational expenses.

Notably, Virgin Atlantic and Scandinavian Airlines have ended their services to China. Virgin Atlantic, after three decades, has ceased flights to Hong Kong and closed its regional office. Reports indicate that several airlines have reduced their operations in China over the last few months. American Airlines has also cut back on flights to China, redirecting resources to more lucrative markets.

Rising costs further complicate the situation. European and U.K. airlines now face bans on using Russian airspace since the Ukraine conflict began. This restriction compels them to navigate longer, costlier routes to reach Asia. However, Chinese airlines do not face these airspace constraints, allowing them to maintain shorter, cheaper routes to Europe, which gives them a competitive edge.

As airlines deal with low demand in China, they are reallocating resources to more profitable routes. For instance, British Airways has shifted aircraft from its Beijing route to Cape Town, where passenger loads improved significantly. While China welcomed about 49.1 million travelers in 2019, only 17.25 million foreign visitors entered by mid-2023, showing a dramatic decline.

China’s domestic airlines also struggle financially amid these challenges. Although Chinese carriers operate the majority of flights between China and Europe, their performance remains weak. In fact, the planned expansion of 18 new routes this winter seems unwarranted given the current low demand. As international airlines pull back from China, the future of air travel between China and the global market appears uncertain.

Ultimately, airlines aim to maintain a minimal presence in China to retain valuable slots for future demand. This strategy reflects their hope for recovery as global travel dynamics shift.

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