Capacity between China and the USA is beginning to rationalise after years of accelerated growth.
Air China, American Airlines, Hawaiian Airlines, Sichuan Airlines and United Airlines will or have pulled out of markets, while others, including Hainan Airlines, are reducing capacity on existing routes through the end of 2018.
"The two China routes… have been colossal loss makers for us," said Vasu Raja, vice-president of network and schedule planning at American, earlier in August on the carrier's decision to suspend service between Chicago O'Hare and both Beijing and Shanghai Pudong in October.
The Oneworld Alliance carrier opted to suspend the routes in favour of "focusing" – or rationalising, to put it another way – its Asia operation around its Dallas/Fort Worth and Los Angeles hubs, he says.
Rapid industry capacity growth between China and the USA, especially from Beijing and Shanghai, has put pressure on the market for the past few years.
At least as long ago as January 2016, then-American president Scott Kirby – he is president of United Airlines today – spoke of "weakness" to China due to competitive capacity growth. Despite this, the Fort Worth–based carrier continued to grow in the market adding new service between Los Angeles and Beijing in November 2017.
While data does not yet include all of American and Hawaiian's cuts, China-USA capacity will grow 6.7% this year. This is nearly 2.5 percentage points slower than in 2017 and the slowest growth in at least five years.