American cuts second US-China flight on fuel cost, rivalry

American Airlines is cutting a route between Chicago and Shanghai, canceling the second direct flight from the US city to China in four months, because of higher fuel costs and competition, the carrier said on Tuesday. The service is not sustainable with high fuel costs, said Vasu Raja, American’s VP of network and schedule planning. “We have opportunities to be successful in other markets.” American cut a flight from Chicago to Beijing in May. China’s aviation regulator said in May it would ease its near decade-old “one route, one airline” policy for Chinese airlines, allowing increased competition on long-haul international routes. “US airlines are at a severe disadvantage. The majority of the demand is China-generated, and that gives Chinese carriers the advantage,” said Mike Boyd, president of aviation forecaster Boyd Group, adding that fare yields are under pressure.<br/>