{"id":146729,"date":"2023-04-11T01:43:54","date_gmt":"2023-04-10T23:43:54","guid":{"rendered":"https:\/\/www.voyages-d-affaires.com\/?p=146729"},"modified":"2023-04-11T10:28:01","modified_gmt":"2023-04-11T08:28:01","slug":"asia-aerial","status":"publish","type":"post","link":"https:\/\/www.voyages-d-affaires.com\/en\/asia-aerial","title":{"rendered":"Asia: a complicated comeback for airlines"},"content":{"rendered":"

On the face of it, the airlines linking Europe and Asia can rejoice. After the absolute lows of 2020 and 2021, traffic will be back on track in 2022<\/strong>. And it's still going strong at the start of this year. However, there is a downside. The rebound was much weaker than expected.<\/strong><\/p>\n\n\n\n

Inflation and the Russia\/Ukraine war<\/h2>\n\n\n\n

Several factors<\/strong> explain this phenomenon. Firstly, there is the slow return of international airlines to China. And this moderate recovery has ramifications throughout Asia. Admittedly, the country is once again open to international travellers, having lifted the latest entry restrictions. But Chinese travellers remain very cautious about international trips. Economic uncertainties, purchasing power affected by inflation, the media talking a lot about Western hostility towards China <\/strong>That's all it takes to put the brakes on Chinese people's wanderlust.<\/p>\n\n\n\n

According to consultant Cirium, at the end of January, the number of Chinese travellers who had returned to international flights was only 10% of the pre-Covid figure. Without the millions of Chinese tourists, many airlines are proving unprofitable.<\/p>\n\n\n\n

The Chinese phenomenon is being repeated on a smaller scale in many other markets. The Japanese travel market is still in limbo, as are Vietnam and Indonesia. As a result, air capacity is still lower than in 2019.<\/p>\n\n\n\n

The second major factor is the Russian-Ukrainian war.<\/strong> with the closure of airspace to Western, Japanese and Korean airlines. Here again fly between one and three hours longer<\/strong> on the same route (i.e. an additional consumption of 20% to 30% of fuel) has repercussions on the profitability of flights. And on the consumer, who has to foot the bill. The rise in paraffin prices in 2022 - again in correlation with the suspension of gas and oil purchases from Russia - is another aggravating factor.<\/p>\n\n\n\n

Shortage of seats<\/h2>\n\n\n\n

Finally, the airlines may be taking some advantage of the situation. Demand for travel remains very strong<\/strong> after two and a half years of various restrictions and despite soaring prices. Added to this is the need to rebuild profit margins and repay loans. All these factors do not argue in favour of lower prices in the immediate future.<\/strong>.<\/p>\n\n\n\n

All these factors have an impact on ticket prices - particularly on the Europe-Asia route. This is what American Express Global Business Travel (Amex GBT)<\/a> in its \"Air Monitor 2023\" study at the end of December. Amex GBT forecasts a general rise in air fares worldwide<\/strong>. In Asia, this means an increase of 12 % for economy class flights between Europe and Asia<\/strong>. and 7.6 % for business class flights<\/strong>. In the sense Asia-Europe<\/strong>According to Amex GBT , the increase is even greater: 14.5% in economy class and 7.3% in business class<\/strong>.<\/p>\n\n\n\n

Compared to before Covid, the average price of a Europe-Asia economy ticket is now well over \u20ac1,000. Depending on the destination, a return ticket costs between \u20ac1,200 and \u20ac1,400.<\/p>\n\n\n\n

Increasing air capacity would therefore be crucial to stabilising or even lowering prices. But this is not the case, according to the consultant OAG. For the week of 03 April 2023<\/strong>compared with the same week in 2019, the number of seats offered worldwide on domestic routes was down by 0.3% and by 13.3% internationally<\/strong>. But the decline is even greater in many Asian sectors<\/strong>.<\/p>\n\n\n\n

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Korean Air has become North East Asia's leading carrier to Europe (Photo: D.R.)<\/em><\/figcaption><\/figure><\/div>\n\n\n\n

North-East Asia seat capacity halved<\/h2>\n\n\n\n

Visit North-East Asia (China, Korea, Japan, Taiwan)<\/strong>However, the number of seats on domestic routes is up (+8.1%), it remains 47.1% lower internationally<\/strong>.<\/p>\n\n\n\n

For example Finnair<\/a> has never resumed its regional services to Japan (Nagoya or Fukuoka)<\/strong>. Air France<\/strong><\/a> as Lufthansa<\/strong> are currently no longer flying to provincial Chinese cities. This applies to Nanjing and Shenyang for Lufthansa, and Guangzhou and Wuhan for Air France. The French airline has also suspended its service to Taipei.<\/p>\n\n\n\n

If companies like Air France, British Airways, KLM, Swiss <\/strong>or Virgin<\/strong> have announced since the beginning of the year that they will resume flights on Beijing <\/strong>and Shanghai<\/strong>However, frequencies are still much lower than they were before the pandemic.<\/p>\n\n\n\n

Departing from Japan, Japan Airlines now flies to only four destinations in Europe<\/strong> (Frankfurt, Helsinki, London Heathrow and Paris CDG). All Nippon Airways<\/strong> is once again flying from Tokyo Haneda to Frankfurt, London Heathrow, Munich and Paris CDG. But with reduced frequencies from Paris, with three flights a week instead of one daily flight before the crisis. In fact, the biggest North-East Asian carrier to Europe is Korean Air.<\/strong> This summer the company will be serving 13 European destinations from Seoul-Incheon<\/strong> including a daily flight to Paris.<\/p>\n\n\n\n