American Airlines Delays China Expansion Amid Sluggish Demand

American Airlines has formally requested a delay in expanding its service to China, citing sluggish demand for travel between the United States and China. According to Reuters, the airline has approached the U.S. Transportation Department seeking permission to hold off on adding two daily flights to the country. Currently, American Airlines operates just one daily flight from Dallas, Texas to Shanghai.

The airline’s request comes as it continues to monitor demand, which has yet to return to the pre-pandemic levels seen in 2019. “U.S.–China passenger demand has not recovered to pre-pandemic levels,” American Airlines stated in its filing. The airline is requesting a waiver to delay the additional two flights it had initially planned, in light of weak consumer interest in the China market.

American Airlines is not alone in making this move. Delta Air Lines and United Airlines have also filed similar requests with the Transportation Department, each seeking permission to delay expanding their flight schedules to China. Delta is currently operating daily flights from Seattle and Detroit to Shanghai, but has asked to postpone the resumption of four more daily flights, which include two flights to Shanghai and two to Beijing. According to Delta’s filing, the airline also cited market challenges, indicating that demand for travel to China has not fully bounced back.

United Airlines, which offers the most extensive China service among U.S. carriers, currently operates nine daily flights to the country but is requesting a waiver to delay six of those flights. This reduction would allow the airline to operate only three daily flights while waiting for demand to improve. United’s hesitation, like Delta’s, reflects the ongoing uncertainty in the U.S.-China travel market.

The hesitancy from these airlines to resume full-scale operations to China comes despite a significant rebound in foreign tourism to China. In the first seven months of 2024, 17.25 million foreign visitors traveled to China, representing a 129.9% increase year-over-year, according to official data. These figures suggest a sharp rise in tourism compared to the previous year, yet airlines remain cautious about the viability of more flights. Much of the current demand appears to be driven by non-U.S. travelers, leaving the U.S.–China travel market lagging behind other regions in recovery.

Several factors may explain the slow recovery of U.S.-China passenger demand. Geopolitical tensions, ongoing visa restrictions, and China’s strict COVID-19 measures have discouraged travel, particularly from the United States. Additionally, concerns about travel disruptions and restrictions have created uncertainty for travelers, leading airlines to remain cautious about expanding capacity too quickly. The U.S.–China travel market has also faced increased competition from one-stop options offered by Middle Eastern and European carriers, further eroding demand for direct flights between the two countries. This, combined with rising fuel costs and fluctuating travel trends, has made airlines wary of increasing their flight schedules prematurely.

Airlines like American, Delta, and United are particularly focused on the economic aspects of resuming these flights. Operating long-haul flights, especially those requiring wide-body aircraft, represents a significant financial investment. Without sustained demand, filling these flights to capacity could result in financial losses, which is why these carriers are seeking to delay service expansion until the market shows more consistent recovery.

Although tourism data shows signs of a resurgence in overall visitors to China, the lack of demand from the U.S. market suggests that the route is not yet profitable enough to justify expanding services. Airlines will likely continue to monitor the situation closely before making any definitive decisions about adding more flights. For now, American Airlines, Delta, and United Airlines are waiting on the U.S. Transportation Department’s decision regarding their requests to delay resuming or expanding flights to China. If the waivers are granted, the airlines will have more flexibility to wait for better market conditions before increasing service.

Despite these delays, the eventual recovery of the U.S.–China travel market is expected, especially as global travel continues to rebound post-pandemic. However, the timing of this recovery remains uncertain, and it may take several more months—or even years—before U.S. airlines feel confident in fully restoring their China routes. Until then, travelers between the two countries may have fewer flight options, with many relying on connecting flights through other regions. In the meantime, U.S. airlines will continue to operate their existing flights, monitoring passenger demand while preparing for potential changes in the global travel landscape that could prompt a return to more frequent service between the U.S. and China.

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