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Airlines exit China market as Russian detour hits costs

Major global airlines are scaling back services or completely withdrawing from China due to increased operational costs stemming from longer routes after the closure of Russian airspace and low demand for travel. Airlines like Virgin Atlantic and Scandinavian Airlines have ceased operations in China, while others, including British Airways, have downgraded the size of their aircraft on routes to the country. Rising fuel costs and the need for larger flight crews have compounded these challenges. Furthermore, demand for travel into and out of China has decreased significantly, with only 17.25 million foreign travelers arriving in the country this year compared to 49.1 million in 2019. While some airlines are reallocating their aircraft to more profitable routes in other regions, Chinese airlines are increasing their flight capacity to Europe, even as domestic demand remains weak.

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