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Overcapacity and price war push down Chinese carriers’ fares
May 23rd 2024
Ticket prices in China’s civil aviation industry plunged in the off-peak season after the five-day Labor Day holiday ended May 5, YiCai Global reports. Read More » The average ticket price for economy class tickets for domestic flights fell nearly 40% to CNY627 (US$87) between May 9 and May 16, according to data from travel agency Trip.Com. The airfares for popular routes sank by over 50%, and the agency offered discounts on tickets for the next one to two weeks down 80 percent to 90 percent from their usual prices. For international flights, the average ticket price for economy class tickets for international flights dropped 23% to CNY2,974 (USD412) in the last week from the same period last year. The main reason for the decrease in airfares is overcapacity as international flights have not yet recovered to the pre-pandemic level. Another reason is abandoning a tacit understanding of setting airfares not lower than those in 2019 to ensure revenues during and shortly after the pandemic. Some carriers began to offer lower prices to tackle the competition, sources at marketing departments of several carriers told Yicai.
