Chinese airlines shares plunge on report of extended flight cuts to Japan through March

Shares of Chinese airlines slumped on a report that the country has asked its carriers to cut the number of flights to Japan through March 2026.

Airlines were asked to make these adjustments “for now”, signalling the situation may change depending on diplomatic developments, Bloomberg reported, citing sources. 

Travel between China and Japan had already declined after China earlier issued a travel warning to its citizens, the report said, adding that the latest directive is likely to ensure the trend continues through the Lunar New Year period — the peak season for Chinese tourists’ overseas spending.

Among the big three state-owned carriers, China Eastern Airlines (0670) is affected the most by the weakening demand as it runs nearly 16,000 flights to Japan each year. Its shares slumped by 5.9 percent in Hong Kong on Tuesday, followed by a 3.3 percent and 1.9 percent drop in Air China (0753) and China Southern Airlines (1055), respectively. 

The number of flights between China and Japan scheduled for next month has plunged 20 percent from October, and over half of the routes could be cancelled by the end of the year, the news agency said.