US airlines are cutting flights between the US and China

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US airlines are cutting flights between the US and China

August 22, 2018 - 10:45
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Two US airlines are cutting flights between the US and China, Reuters reports. The reason is in growing competition on behalf of Chinese airlines supported by state, aggressively expanding fleet and reducing prices.

Photo © Michael Gaida, CC0 1.0

Two US airlines are cutting flights between the US and China, Reuters reports. The reason is in growing competition on behalf of Chinese airlines supported by state, aggressively expanding fleet and reducing prices.

The largest by passengers American Airline announced cancellation of flights from Chicago to Shanghai. This is the second direct flight from the US to China that company cancelled within last four months. Leaders of the company note that these two routes were source of large losses.

Hawaiian Airlines will cancel flight Honolulu-Beijing flying three times a week.

It is expected that competition on behalf of Chinese airlines will grow further, especially after cancellation of old rule “one airline-one route”.

As large part of demand is generated in China, then US airlines will lose benefits. It is expected that number of Chinese passengers arriving to US airports will almost triple to 12,8 million by 2024 from 4,3 million this year.