In 2024, major airlines around the world are quietly withdrawing their operations from China due to the geopolitical tensions and challenges posed by Russia’s airspace closure. Airlines like Finnair have drastically reduced their flights to China and rerouted their services to avoid Russian and Ukrainian airspace. High fuel costs and longer flight times have made once lucrative Euro-China routes unprofitable, leading to a significant decrease in available seats to China.
While Finnair has reduced its capacity to China, it has maintained and even increased its services to other Far Eastern destinations like Japan, South Korea, Thailand, and Singapore. The closure of Russian airspace has significantly increased flight times to China, making it challenging for European airlines to remain competitive. Airlines are optimizing their networks and schedules to adapt to the changing market conditions and focus on more profitable routes.
Many European airlines, including British Airways, Lufthansa, and LOT Polish Airlines, are quietly reducing their operations to China by either cutting frequencies or suspending routes altogether. Some, like Virgin Atlantic and SAS Scandinavian Airlines, have decided to completely withdraw from China due to various challenges and complexities. These decisions are influenced by market conditions and the need for airlines to optimize their networks for better returns.
Airlines across Europe are calling for a level playing field and regulatory intervention to address the unfair advantage that Chinese airlines have in accessing Europe via Russian airspace. The ongoing trade war between the US and China has further strained economic relations and impacted air travel demand between the two superpowers. Despite the challenges, corporate travel within the Greater China region has rebounded, indicating a demand for travel that may need more time to fully recover.
The economic factors, including the slowdown of China’s economy and strained economic relations with the West, play a significant role in the decisions of airlines to reduce or withdraw their operations to China. Chinese airlines’ pricing advantage and routing advantages over Russian airspace have intensified competition and driven down fares on key routes. While some airlines are optimistic about the long-term potential of the Chinese market, others are cautious and are actively monitoring the situation for future opportunities.
As airlines navigate the complexities of international travel in the post-pandemic world, the decision to reduce or withdraw operations from China is influenced by a combination of economic, geopolitical, and competitive factors. While some airlines are facing challenges in the Chinese market, others remain bullish on the long-term prospects of air travel to and from China. The evolving landscape of global air travel presents both opportunities and challenges for airlines looking to maintain a competitive edge in the industry.
