Western airlines rethink China return after Covid restrictions lift

After China reopened its borders post-Covid, Western airlines initially planned to return to the market, but the situation has changed significantly over the past year. Increased operational costs and longer flight times due to the war in Ukraine have made these airlines less competitive compared to their Chinese counterparts. For instance, Delta Air Lines has postponed its Los Angeles-Shanghai route due to slower travel demand recovery, while British Airways has suspended its London-Beijing service until at least November 2025. Chinese airlines have capitalized on the situation, benefiting from shorter flight routes to Europe and North America, as they are not restricted from using Russian airspace. In contrast, Western airlines face additional costs and longer travel times, which can deter travelers. The detours can add up to three hours to flight times, significantly increasing fuel and crew costs, making it challenging for foreign airlines to compete effectively. The geopolitical landscape is also influencing airline operations, with the US Department of Transportation increasing the quota for Chinese carriers flying to the US. However, the relationship between China and the Western world remains strained, impacting the airline industry. While US airlines delay resuming services to China, Chinese carriers are expanding their flight offerings, maximizing their allowed flights to the US. As a result, the competitive landscape has shifted, with Chinese airlines gaining an advantage while Western airlines struggle to regain their footing in the market. The future of international travel to and from China remains uncertain as geopolitical tensions and operational challenges persist.