Air China will cease its flights on the Beijing-Hawaii route from Aug. 27 after a report of its community, China’s flagship service stated on Tuesday, as journey demand stays weak amid a heightening U.S.-China trade war.
Passengers who’ve bought tickets for travel after that date will get a full refund, Air China said in a comment on its web site.
The passenger load factor — an industry metric that measures how a lot of an airline’s passenger carrying capacity is used – for Air China’s thrice-weekly Beijing-Honolulu route averaged 66.37% last year, following Chinese aviation data provider Variflight.
That was well under the average capacity issue of 76.69% for Air China’s international flights last year.
Hong Kong-listed shares of Air China fell 3.5% on Tuesday, whereas its Shanghai-listed shares shed 2.8%.
Hawaiian Airlines final year pulled out of the same non-stop service between Honolulu and Beijing, which it opened in 2014, citing slower-than-expected growth in demand.
Its CEO Peter Ingram mentioned the route was suspended due to lack of growth and not due to trade pressures with China.
The Air China statement comes at a sensitive time in U.S.-China relations as the world’s two giant economies are locked in a year-lengthy trade war that has disrupted international supply chains and knocked financial markets.
Beijing in June issued a journey advisory warning Chinese tourists about the risks of touring to the United States, citing concerns about gun violence, robberies, and thefts.
The variety of Chinese vacationers arriving in the United States posted the first decline last year in 15 years, according to U.S. data.