American Airlines is cutting a route between Chicago and Shanghai, canceling the second direct flight from the U. S. city to China in four months, because of higher fuel costs and competition, the carrier said on Tuesday.
DENVER (Reuters) – American Airlines ( AAL. O) is cutting a route between Chicago and Shanghai, canceling the second direct flight from the U. S. city to China in four months, because of higher fuel costs and competition, the carrier said on Tuesday.
The service is not sustainable with high fuel costs, Vasu Raja, American’s vice president of network and schedule planning, said in a statement. “We have opportunities to be successful in other markets.”
American, the largest U. S. carrier by passengers, cut a flight from Chicago to Beijing in May.
Hawaiian Airlines [HAII. UL] also said on Tuesday it would suspend its thrice-weekly nonstop service between Honolulu and Beijing.
China’s aviation regulator said in May it would ease its near decade-old “one route, one airline” policy for Chinese airlines, allowing increased competition on long-haul international routes.
“U. S. airlines are at a severe disadvantage. The majority of the demand is China-generated, and that gives Chinese carriers the advantage,” Mike Boyd, president of aviation forecaster Boyd Group, said, adding that fare yields are under pressure.
