Chinese airlines are aggressively expanding their reach in the China-Europe air travel market, taking advantage of the reduction in services from European carriers. This strategic push is not just about filling the gaps left by European airlines but also serves a larger purpose of strengthening China's global aviation presence. As Chinese airlines increase their offerings on these routes, passengers are benefiting from more flight options and better competitive pricing, which has been made possible by the Chinese carriers' drive to capture a larger share of this lucrative market.

In recent months, European airlines have been significantly scaling back their operations to China due to rising costs, weak demand, and other challenging market conditions. For instance, KLM, the Dutch flag carrier, has reduced its flights from Amsterdam to Beijing and Shanghai, while Scandinavian Airlines ended its 36-year-long presence in China by ceasing its Shanghai-Copenhagen route. Other major European carriers like Lufthansa, British Airways, Virgin Atlantic, and LOT Polish Airlines have also pulled back, leaving only seven European airlines on China-Europe routes, down from 14 in 2019. This shrinking presence creates a perfect opportunity for Chinese carriers to expand their operations and further cement their place in the international aviation market.

In response, China’s three largest airlines — Air China, China Eastern Airlines, and China Southern Airlines — have significantly increased their seat capacity on these routes. By the first half of 2024, they were offering about 4.67 million seats, marking a 21.25% increase compared to 2019 and more than doubling the capacity from the same period last year. The decision by Chinese carriers to ramp up their international presence is a calculated move to shift the focus away from oversupplied domestic markets, which had been their primary focus during the post-pandemic period when international travel was slow to recover. With domestic flight routes becoming saturated and unprofitable, Chinese airlines have turned to international markets like Europe to regain financial stability.

The expansion into the European market is not just a response to the contraction of European airlines; it also provides a long-term strategic advantage for Chinese airlines. By securing additional slots at major European airports, particularly those that are capacity-constrained, Chinese carriers aim to secure prime operating positions. If they successfully retain these slots, it could provide a significant advantage in the long term, particularly if China’s economic situation improves and travel demand surges. Analysts suggest that this could put pressure on European carriers, as they will lose these slots if they do not utilize them in the coming year.

In 2024, several new routes have been added to China-Europe services, further expanding Chinese carriers' presence in the region. Air China has launched a Chengdu-Milan route, China Eastern Airlines now offers a direct Shanghai to Marseille service, and China Southern Airlines has started flying from Guangzhou to Budapest. These new routes are part of a broader strategy by Chinese airlines to not only recover from pandemic-induced losses but also solidify their presence in key European cities.

As of late 2024, Chinese airlines dominate the China-Europe market, accounting for more than 84% of the flights between the two regions. This marks a substantial increase from 2019 when Chinese carriers accounted for just 60% of these flights. Additionally, Chinese airlines benefit from unhindered access to Russian airspace, which has been a key factor contributing to their competitive edge over European carriers. The ongoing geopolitical tensions and economic challenges in Europe, coupled with restricted airspace usage, have created a situation where Chinese carriers can operate more freely and efficiently on these long-haul routes.

Ultimately, while the short-term sustainability of this expansion remains uncertain due to geopolitical and economic factors, the move to solidify China’s position in the global aviation landscape is an essential part of the country’s broader strategic ambitions. By further bolstering air connectivity and offering more direct, competitive flight options, Chinese airlines are helping to position their nation as a rising aviation power on the world stage. Whether this strategy can continue to thrive in the face of uncertain global conditions will be a major factor in determining the future of China’s role in the global aviation market.

Disclaimer: This Image is taken from CNA News.