Lufthansa Drops Beijing Service Amid Mounting Competition From Chinese Airlines

Lufthansa has become the latest European airline to cut service to mainland China as the closure of Russian airspace continues to impact route profitability.

The carrier has suspended reservations for flights between Frankfurt Airport (FRA) and Beijing Capital International Airport (PEK) starting Oct. 26, following similar moves by British Airways (BA) and Virgin Atlantic to reduce their capacity to China.

Data from OAG Schedules Analyser shows Lufthansa had previously planned to operate the Frankfurt-Beijing route five times per week during the winter 2024-25 season using Airbus A340-300 aircraft.

Following the suspension, the airline's only service to Beijing will be from Munich Airport, set to operate five times per week with A350-900s this winter. However, the Star Alliance member will continue to offer daily flights to Shanghai Pudong International Airport from both Frankfurt and Munich.

“It is becoming increasingly challenging for Lufthansa Airlines to achieve a balanced result across all four seasons,” a statement from Lufthansa says. “In addition to short-term measures to safeguard earnings, the airline has launched a comprehensive turnaround program to increase efficiency, reduce complexity and improve quality, thereby positioning the core brand for the future.

“Lufthansa is continuously evaluating and optimizing its entire route network, particularly with a view to profitability and the capacity shortages caused by aircraft manufacturers' delivery problems. Therefore, Lufthansa decided to temporarily suspend LH 720/721 service between Frankfurt and Beijing starting with the [beginning] of the winter schedule 2024-25.”

As previously reported by Aviation Week, the dynamics of the China-Europe market are changing, with European airlines reducing capacity while Chinese carriers expand theirs. The shift is being brought about by the closure of Russian airspace following the country’s invasion of Ukraine in spring 2022.

Lufthansa’s flights between Frankfurt and Beijing now take up to 2 hr. longer than before, increasing operational costs. In contrast, Chinese carriers continue to overfly Russia on routes to Europe, providing them with a competitive advantage.

Lufthansa says the removal of the Beijing route therefore shows how much the balance of international competition is shifting. “European airlines are in an extremely unequal competitive position with China, as well as with airlines from the Persian Gulf and Bosporus,” the carrier says.

“All airlines from these countries benefit from low location costs, low social standards and high government investment in the aviation sector. For more than two years, they have also been using Russian airspace, unlike European and American airlines. The shorter routes result in further cost advantages.”

Lufthansa adds that while countries like China, the United Arab Emirates, Turkey, Qatar and Saudi Arabia are heavily supporting aviation, European Union (EU) airlines face increasing challenges from political conditions that weaken their global competitiveness. These include rising fees, stringent regulations, unilateral climate policies and inefficient infrastructure.

“This imbalance is intensifying international competition at the expense of EU airlines,” Lufthansa says. “Politicians in Germany and the EU must respond to this global development so that Europe continues to have an independent and efficient aviation industry in the future.”

Lufthansa’s withdrawal from Frankfurt-Beijing will leave Air China as the sole operator of flights between the cities. OAG data shows that the Chinese airline serves the sector 16X-weekly at present using Boeing 777-300s.

In July, Virgin Atlantic announced plans to terminate its only route to mainland China at the end of the summer 2024 season, ending flights between London Heathrow Airport and Shanghai Pudong from Oct. 25. BA also said in August that its London Heathrow-Beijing Daxing service will be paused from Oct. 26.

However, while European airlines are withdrawing routes and capacity, Hainan Airlines has become the latest Chinese operator to increase service between China and Europe. The airline plans to launch a Shenzhen-Madrid service on Nov. 19, operating twice a week using 787-9 aircraft.