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Airlines in China - Market Research Report (2014-2029)

Jennie Hu Jennie Hu Beijing, China Last Updated: May 2024 5511

Revenue

$XX.Xbn

2024

$56.7bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

XX,XXX

Businesses

X,XXX

Wages

$XX.Xbn

Airlines in China industry analysis

Over the five years through 2023, revenue for the airline industry in China has fallen at a CAGR of 10.6% to a total of $49.2 billion. This includes a growth of 53.2% in the current year. The Airlines industry has been affected by COVID-19 for three consecutive years since 2020. Total passenger volumes declined by 37.7% in 2020 to 417.8 million and grew slightly by 5.5% to 440.8 million in 2021. In 2022, passenger volumes declined by 43.2% to 250.2 million.The industry is subject to fierce competition, leading to low-profit margins. The challenges faced in the past five years include travel restrictions caused by COVID-19, the unstable global economy, and high aviation fuel prices, which led to industry losses in 2020, 2021, and 2022. Due to the relaxation of travel restrictions, the airline industry will gradually recover in 2023.Over the five years through 2028, industry revenue is forecast to grow at a CAGR of 11.5% to $84.9 billion. Growth will likely stabilize as air traffic volumes increase steadily and the industry matures gradually. Still, volatile jet fuel prices will remain a significant risk factor for industry operators. ACMR-IBISWorld also anticipates that competition among airlines and profit squeezing will be somewhat alleviated with further industry consolidation. Other notable trends include an increasingly private and foreign presence in the industry and the rapid development of regional airlines in China's second and third-tier cities.

Trends and Insights

  • COVID-19 has severely hit the airlines industry. Due to the policy of restricting travel, air passenger traffic has decreased significantly in the past three years.
  • Domestic main air transportation accounts for the largest portion. In these large cities with developed airline economies, competition is very fierce.
  • Central cities account for most of the passenger traffic. Beijing, Shanghai, and Guangzhou, with developed airlines industry, are the destinations for many passengers.
  • Air ticket prices are the basis of competition. Airlines usually attract more passengers through discounts.

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  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of XX.X% over the past five years, to reach an estimated $XX.Xbn in 2024.

Trends and Insights

COVID-19 strikes the airline industry

  • Domestic and international tourism numbers, business demand for flights, and overall economic forces primarily drive industry demand.
  • Additional trends and insights available with purchase
Airlines in China
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

Trends and Insights

Recovering tourism demand will stimulate an increase in the airline industry

  • With the relaxation of COVID-19's restriction policy at the end of 2022, the flow of people will no longer be restricted, and the tourism industry will recover in 2023.

Biggest companies in the Airlines in China

Company
Market Share (%)
2023
Revenue ($m)
2023
China Southern Airlines Company Limited
19,230.6
Air China Limited
18,432.2
China Eastern Airlines Corporation Limited
14,768.7

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Airlines in China
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Domestic mainline air transportation, International air transportation and Domestic regional air transportation. Domestic mainline air transportation is the largest segment of the Airlines in China.

Trends and Insights

Domestic mainline air transportation is subject to intense competition.

  • Domestic mainline air transportation refers to flights between two large cities, such as provincial capitals, and the four centrally administered municipalities of Beijing, Shanghai, Tianjin, and Chongqing.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The Airlines industry in China operates aircraft for the transportation of passengers. The industry includes international and domestic passenger air transportation services.

What's included in this industry?

Products and services covered in the Airlines industry in China include International passenger air transportation , Domestic mainline passenger air transportation and Domestic regional passenger air transportation.

Companies

Companies covered in the Airlines industry in China include China Southern Airlines Company Limited, Air China Limited and China Eastern Airlines Corporation Limited.

Purchase this report to view all 7 major companies in this industry.

Related Terms

Related terms covered in the Airlines industry in China include available seat kilometers (ask), passenger-kilometers, passenger load factor and passenger yield.

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

COVID-19 has severely hit the airlines industry. Due to the policy of restricting travel, air passenger traffic has decreased significantly in the past three years.

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Domestic main air transportation accounts for the largest portion. In these large cities with developed airline economies, competition is very fierce.

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

Central cities account for most of the passenger traffic. Beijing, Shanghai, and Guangzhou, with developed airlines industry, are the destinations for many passengers.

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Air ticket prices are the basis of competition. Airlines usually attract more passengers through discounts.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Airlines have increased efforts to build hub networks. Large airlines build aviation networks around their main bases to enhance their competitiveness.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of China Southern Airlines Company Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Air China Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of China Eastern Airlines Corporation Limited's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for China Southern Airlines Company Limited, and factors influencing its performance in the industry
  • Description and key data for Air China Limited, and factors influencing its performance in the industry
  • Description and key data for China Eastern Airlines Corporation Limited, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The government has precise requirements for foreign investment. The government has put forward equity requirements and senior management requirements for foreign investment a...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

COVID-19 damages the profitability of the industry. With the relaxation of travel restrictions, industry profit margins will rebound.

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Airlines industry in China in 2025?

The market size of the Airlines industry in China is $XX.Xbn in 2025.

How many businesses are there in the Airlines industry in China in 2024?

There are $XX.Xbn businesses in the Airlines industry in China, which has declined at a CAGR of XX.X% between 2019 and 2024.

How may import tariffs affect the Airlines industry in China?

The Airlines industry in China is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Airlines industry in China?

The Airlines industry in China is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Airlines industry in China grown or declined over the past 5 years?

The market size of the Airlines industry in China has been stable at a CAGR of XX.X% between 2019 and 2024.

What are the biggest companies in the Airlines industry in China?

The biggest companies operating in the Airlines industry in China are China Southern Airlines Company Limited, Air China Limited and China Eastern Airlines Corporation Limited

What does the Airlines industry in China include?

International passenger air transportation and Domestic mainline passenger air transportation are part of the Airlines industry in China.

Which companies have the highest market share in the Airlines industry in China?

The company holding the most market share in the Airlines industry in China is China Southern Airlines Company Limited.

How competitive is the Airlines industry in China?

The level of competition is high and increasing in the Airlines industry in China.

Related Industries

Widen your competitive advantage with related industries

Complementors

View all industries in China

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in China include:

  • National Bureau of Statistics China
  • General Administration of Customs
  • People’s Bank of China

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.