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ZTO Express launches air cargo services to satisfy Mainland demand
June 27th 2025
ZTO Express has joined other Chinese logistics providers in setting up its own air cargo unit, Zhongtong Aviation, based in Changsha in Hunan province. Read More » It is funded with start-up capital of CNY600 million (US$83 million), Yicai Global reports. In recent years, several Mainland logistics firms have established air cargo subsidiaries. Among them are SF Express, China Post Group, JD Logistics and YTO Express Group. Since 2020 fewer Mainland international passenger flights have reduced cargo hold capacity. At the same time, strong demand for medical and pandemic-related supplies has driven up China’s air freight rates. “The rapid development of the domestic express delivery sector has prompted couriers to set up cargo units, building fleets of dedicated planes to lessen their dependence on passenger airlines and to capture cargo volumes,” an executive at one courier company told Yicai. This trend has an impact on the Mainland’s legacy carriers. SF Express has 90 cargo jets. It is squeezing the cargo businesses of traditional small and medium-sized carriers, the insider told Yicai. The cargo arms of China’s three major state-owned airlines outdid most passenger carriers in earnings last year. Net profit at Air China Cargo surged 69% to CNY1.9 billion (US$264.6 million) in the 12 months. China Southern Airlines Logistics earnings soared 72%, to CNY4.2 billion in the same period and China Eastern Airlines Logistics revenue rose 7.4%, to CNY3.1 billion in calendar 2024. In the matching year, the parent companies of the “Big Three” carriers lost money.
Greater Bay Airlines (GBA) Hong Kong-Phu Quoc flights will increase from a seasonal summer rotation to a scheduled service from October 27, operating the route four times a week.
