Chinese airlines are capitalizing on market shifts, while European carriers are scaling back operations on key routes. According to recent research, increased travel times between destinations significantly impact ticket prices. Travel time extensions of 5 to 60 minutes raise ticket prices by $59, while increases of 60 to 120 minutes add as much as $190. These rising costs have disrupted the viability of certain routes.
LOT Polish Airlines recently discontinued its Warsaw-Beijing route, citing increased operational expenses. Similarly, Scandinavian Airlines suspended its Copenhagen-Shanghai route, and Lufthansa Group confirmed it is dropping its direct Frankfurt-Beijing service. British Airways also ended its London-Beijing route in late October, around the same time Virgin Atlantic operated its final flight from London to Shanghai.
The shift in market dynamics has allowed Chinese carriers to gain substantial control over air traffic between China and Europe. Last summer, China Eastern Airlines announced it would expand its European network to 19 routes, with 244 weekly round-trip flights. China Southern Airlines also launched direct service from Budapest to Guangzhou and now operates 11 routes to Europe.
Air China has emerged as the largest Chinese airline serving Europe, offering 32 routes and 53 daily flights. This represents a 116% increase compared to 2019, according to the Global Times. Chinese airlines now account for 77% of air traffic between China and Europe, up from 50% pre-pandemic. In certain markets, such as those involving Italy and the United Kingdom, Chinese carriers now dominate 100% of the traffic.
This growing dominance underscores the shifting dynamics in the aviation sector, with Chinese airlines capitalizing on reduced competition and expanding their reach across Europe.
