China’s airlines are stuck in a difficult paradox, according to a new industry report: while their passenger numbers have risen, they are struggling to secure profits as competition intensifies on the most common routes and a world-leading high-speed rail network offers an appealing alternative for many of the country’s travellers.
In its report, Brazilian planemaker Embraer said that passenger volumes have surged past pre-pandemic levels – putting the government’s official goal of 1.5 billion annual travellers by 2035 firmly within sight – the industry remains stuck in a structural trap of overcapacity and fare dilution.
The report said Chinese carriers remain heavily focused on already saturated trunk routes, with over 65 per cent of flights operating on high-density corridors that have more than 800 daily passengers.
