{"id":13055,"date":"2025-11-20T09:45:31","date_gmt":"2025-11-20T01:45:31","guid":{"rendered":"https:\/\/sgbuzz.com\/?p=13055"},"modified":"2025-11-20T09:45:31","modified_gmt":"2025-11-20T01:45:31","slug":"chinese-airlines-dogfight-for-profits-as-route-competition-railways-soak-up-revenue","status":"publish","type":"post","link":"https:\/\/sgbuzz.com\/?p=13055","title":{"rendered":"Chinese airlines dogfight for profits as route competition, railways soak up revenue"},"content":{"rendered":"<p><br \/>\n<br \/><img decoding=\"async\" src=\"https:\/\/cdn.i-scmp.com\/sites\/default\/files\/styles\/1280x720\/public\/d8\/images\/canvas\/2025\/11\/17\/84a20789-f782-4ec1-badf-5841cc66f698_5fe88a93.jpg\" \/><\/p>\n<div id=\"\">\n<div datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1xdhyk6 ec74h0k0\"><span data-qa=\"Component-Text\" class=\"css-0 ef9u0v00\">China\u2019s airlines<\/span> 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\u2019s travellers.<\/div>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">In its report, Brazilian planemaker Embraer said that passenger volumes have surged past pre-pandemic levels \u2013 putting the government\u2019s official goal of 1.5 billion annual travellers by 2035 firmly within sight \u2013 the industry remains stuck in a structural trap of overcapacity and fare dilution.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">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.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">In addition, flights are at almost 76 per cent of capacity as defined by domestic available seat kilometres (ASK), mostly on routes served by three or more competitors.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cThe result is a market defined by frequency wars, pricing pressure and diminishing marginal returns,\u201d Embraer said.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Fleet composition is also compounding the problem. More than 80 per cent of China\u2019s narrowbody jets are optimised for high-capacity and short to medium-haul operations, leaving lower-density markets underserved.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">High-speed rail has added another structural headwind. The report said the rapid expansion of China\u2019s railway network has fundamentally reshaped domestic travel patterns, pushing airlines into even fiercer competition along their remaining profitable corridors.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.scmp.com\/economy\/economic-indicators\/article\/3333094\/chinese-airlines-dogfight-profits-route-competition-railways-soak-revenue?utm_source=rss_feed\" target=\"_blank\" rel=\"noopener\">Read Full Article At Source <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>China\u2019s airlines are stuck in a difficult paradox, according to a new industry report: while their passenger numbers have risen, they are struggling to secure&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[4840],"tags":[8587,107,8326,10166,10167,10168,10170,8441,10169],"class_list":["post-13055","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel-globetrotting","tag-airlines","tag-chinese","tag-competition","tag-dogfight","tag-profits","tag-railways","tag-revenue","tag-route","tag-soak","wpcat-4840-id"],"_links":{"self":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/13055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13055"}],"version-history":[{"count":0,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/wp\/v2\/posts\/13055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sgbuzz.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}