In a surprising move, AirAsia Philippines, one of the region’s most popular budget airlines, has announced it will cease all direct flights between Manila and China by the fourth quarter of 2024, citing to dwindling demand.
The news, first revealed by GMA Integrated News, marks a strategic shift for the airline as it grapples with the ongoing recovery of international travel post-pandemic.
According to AirAsia Philippines CEO Ricardo Isla, the airline has struggled to restore its pre-pandemic sales figures for the Manila-China route.
“By the fourth quarter, no more China flights for us,” Isla disclosed during the EJAP-SMC Aviation Forum, which took place in Manila on September 9.
He emphasized the airline’s focus on profitability, stating, “At the end of the day, we have to ensure we’re building profitability, and the demand for this route just isn’t there yet.”
Before the pandemic, China accounted for 30% of AirAsia Philippines’ passenger traffic, with the airline operating flights to seven Chinese cities.
However, the number of routes has since plummeted, first to four cities in 2023 and now reduced to just two.
Despite the airline’s overall recovery, international demand – particularly between Manila and China – remains sluggish, at only 65% to 70% of pre-2019 levels.
As a result, the airline has decided to concentrate on expanding more profitable routes, including adding new destinations in Japan.
AirAsia Philippines is set to introduce flights to Okinawa and Nagoya, joining its existing routes to Narita and Osaka.
Although direct AirAsia Philippines flights between Manila and China will no longer be available, travelers will still have the option of booking connecting flights via Kuala Lumpur.
Additionally, AirAsia flights from Hong Kong, serving the Greater Bay Area, remain unaffected.
Despite the challenges posed by a slow recovery in international travel, AirAsia Philippines remains optimistic about future opportunities, shifting its focus to markets with higher demand while temporarily stepping back from one of its most historically significant routes.
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[Cover image via AirAsia]
