What you need to know

Total air passenger volume reached 690 million visits in China last year. The domestic segment and international segment accounted for about 80% and 20% respectively for the total passenger volume. Looking ahead, total air passenger volume is expected to increase at a CAGR of 9.3% in 2019-24. The international segment is estimated to grow faster than then domestic segment in the future.

Domestic short-distance flights face competition from high-speed trains. Airlines can capitalise on themed flights to differentiate flying experiences and attract potential consumers to travel by air on short-distance trips.

There are opportunities for airlines to increase revenue from non-ticket services. Consumers are more willing to pay extra for comfortable cabin experiences and healthier in-flight meals. Healthier meals could also deliver functional benefits that help passengers achieve holistic wellness. Entertainment on board however does not strongly motivate consumers to pay extra.

Covered in this Report

This Report covers passenger airlines, including both domestic and international airlines with a flight service in mainland China.

Market size is based on numbers of passengers taking off or landing in mainland China. This includes passengers carried by domestic airlines as well as those carried by international airlines.

The total air travel market is divided into the domestic segment and the international segment. Market share is calculated based on air passenger volume.

Mintel uses the following income definition:

Monthly household income Tier 1 cities Tier 2, 3 or lower cities
Low household income RMB6,000 – 9,000 RMB5,000 - 8,999
Middle household income RMB10,000 - 17,999 RMB9,000 - 15,999
High household income RMB18,000 or above RMB16,000 or above

Excluded

Freight-only flights and non-paying travellers are outside the scope of this Report.

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