Global airlines are facing significant shifts in the European aviation sector as geopolitical tensions reshape flight paths and market dynamics.
Chinese carriers have seized a dominant 74 per cent market share on China-Europe routes, up from 60 per cent in 2019, amid ongoing airspace restrictions.
The Russian airspace closure has forced European airlines to take extended flight paths to Asia, driving up operating costs and making some routes financially unviable.
British Airways announced it would suspend direct flights to Beijing from London until November 2025 and halve its Hong Kong services.
Virgin Atlantic said it would end direct flights to Shanghai from London after October 2024 due to operational challenges.
Middle Eastern carriers have gained competitive advantages through lower labour costs and strategic hub locations approximately eight hours from major Asian population centres.
Air France-KLM reported minimal service to Southeast Asia after losing traffic to Middle Eastern competitors due to cost structures.
Lufthansa reduced its Southeast Asian destinations to just two – Bangkok and Singapore – down from 14 previously.
The Helsinki Airport has been particularly impacted, with passenger traffic to Asia dropping 45 per cent compared to 2019 levels.
Finnish carrier Finnair cut its direct China flights from Helsinki to just three per week in August 2024, down from 42 weekly flights in August 2019.
Dubai World Central and Saudi Arabia’s King Fahd International Airport are undertaking USD 60 billion in expansions to accommodate future annual passenger volumes of 260 million and 185 million respectively.
European airports affected by the disruptions are seeking to offset lost Asian connectivity by expanding US routes, with the American market remaining crucial for European destinations according to the European Travel Commission.
