Airlines face hurdles to cashing in on China re-opening

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Airlines face hurdles to cashing in on China re-opening
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While there is pent-up demand for travel to China, US and European airlines have to overcome barriers like route approvals and fresh testing rules. Read more at straitstimes.com.

WASHINGTON - US and European airlines will benefit from pent-up demand for travel to China after its recent border reopening, but route approvals, fresh Covid-19 testing rules and not enough large aircraft remain barriers to rising sales, analysts and industry officials say.

A round-trip fare from San Francisco to Shanghai on United Airlines for a week-long trip in early March costs US$3,852 in economy class and US$18,369 in business class, according to a Reuters search on the airline’s website. But US and European airlines, which have focused traditionally on the strong business travel market to China, and often cater more to the preferences of Western passengers, are poised to benefit from companies willing to pay a premium to rekindle face-to-face ties.

United, which had 584 flights to and from China in January 2019 according to Cirium, can now fly four times weekly from the US to mainland China. United said it could add services pending government authorisations.

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