GlobalData forecasts that the Chinese FSC market will overtake the US by 2023 in terms of number of seats sold by a FSC per destination reaching 929 million compared to 872 million in the US.
GlobalData’s latest report Global Full Service Airlines Market to 2023 found that by 2023, reflective on the growing connectivity of the Chinese travellers, the FSC industry in China seats sold will grow at a compound annual growth rate (CAGR) of 10,6 percent (2018-2023) to reach approximately 100 million (929 million).
Despite a small dip in 2018-2019 due to a decline in Chinese travellers to Thailand, load factor more or less remains high highlighting that industry growth is almost consistent with the consumers demand.
At the beginning of 2019, 29 Chinese airlines began international operation in comparison to solely 15 in 2016, reflecting the mass growth of the industry.
However, foreign airlines have been gradually losing market share due to aggressive competition and expansion from Chinese airlines. Leading players Air China, China Eastern and China Southern took up 61 percent of international seat capacity from Chinese airlines or including foreign airlines 33 percent, according to the Centre of Aviation (CAPA) in 2019.