Airfares from Asia fall as Chinese carriers ramp up flights

Airfare for international flights to and from Asia is falling as Chinese airlines aggressively expand cross-border service amid softening post-pandemic travel demand. "Compared to last year's summer break, the prices of tour packages have gone down considerably," said a representative of a travel agency in the Chinese city of Shenzhen. "Family group tours have been especially popular." For example, a trip to Japan costs roughly 6,000 yuan ($839) per person, down roughly 1,000-2000 yuan from last year. The decline in tour package costs is being driven by lower air ticket prices. For this year's summer holiday, the average ticket price for an international flight is 2,183 yuan, according to data from Chinese travel data tracker DAST. That is 26% below 2023 levels and down 12% from the pre-COVID year of 2019. The zero-COVID policy the Chinese government put in place until January 2023 delayed a full-fledged recovery in the country's aviation and travel industries. Domestic flights continued to open in 2023, but a clear recovery in international flights did not start to take hold until this year. The number of flights on international routes is expected to reach 80% of 2019's volume, according to China's Civil Aviation Administration. A number of large carriers are not just reopening flights, but also adding new routes and expanding existing ones. China Eastern Airlines by July has opened new routes connecting Shanghai to Vienna, and to Marseille, France. The airline also added flights to London and Madrid. China Southern Airlines established a new direct route connecting Guangzhou with Budapest. Juneyao Airlines added three new direct routes coupling its home city of Shanghai with Brussels, Athens and the British city of Manchester. Overall, there were more flights in July compared to 2019 in routes linking China to Malaysia, Singapore, the U.K. and Italy. During the summer break, international flights are expected to increase to Japan, South Korea and Southeast Asia, due to rising demand for trips and overseas study, according to the Civil Aviation Administration. <br/>
Nikkei
https://asia.nikkei.com/Business/Transportation/Airfares-from-Asia-fall-as-Chinese-carriers-ramp-up-flights
8/16/24