Major airline shakeup: Qantas announces suspension of airline route
By
Seia Ibanez
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Navigating the ever-changing landscape of international travel can be a challenge, especially for those of us eagerly anticipating the return of regular overseas trips.
For Australian globetrotters, particularly those with a penchant for Asian destinations, the latest announcement from Qantas may require a quick reshuffling of travel plans.
In a significant reshuffling of its Asia network, Qantas announced the suspension of a key route that had only recently been reinstated post-pandemic.
The Sydney to Shanghai service is set to be discontinued on 28 July 2024 due to underwhelming demand.
This decision underscored the ongoing challenges faced by the aviation industry in the wake of COVID-19 and changing travel patterns.
The Sydney to Shanghai route was relaunched with much fanfare just nine months ago, but the anticipated resurgence of travellers has not materialised to the extent expected.
Qantas International CEO Cam Wallace expressed disappointment in the route's performance.
‘Since COVID, the demand for travel between Australia and China has not recovered as strongly as expected. In some months, our flights to and from Shanghai have been operating around half-full,’ he said in a statement.
‘That’s why we’ve decided to suspend this route and boost flying to other popular destinations with a new route from Brisbane to Manila and additional flights to Singapore and Bengaluru. This will create more choice for our corporate and leisure customers and make it even easier for them to access the places they need to travel to in Asia.’
The airline plans to maintain its presence in China through partnerships and its existing flights to Hong Kong, with hopes to return to Shanghai when the market conditions are favorable.
For those with existing bookings to Shanghai after 27 July, Qantas has promised to offer a full refund.
In the meantime, Qantas is redirecting its focus towards other popular destinations in Asia.
A new route from Brisbane to Manila is set to launch, and additional flights to Singapore and Bengaluru are being added to the schedule.
These changes are part of a broader strategy to offer more choice and convenience to both corporate and leisure customers, making it easier for them to access key destinations across the continent.
Qantas's network adjustments also include increased flights from Sydney to Singapore, jumping from 14 to 17 return flights per week, and from Brisbane to Singapore, increasing from seven to nine return flights per week.
The broader context of international travel recovery paints a complex picture.
According to AMP's 2023 tourism analysis, the sector has been grappling with the lingering effects of extended border closures, inflationary pressures on airfares, and logistical challenges related to COVID-19.
‘A shortage of Chinese arrivals since 2020 (which used to make up a decent 15 per cent of Australian short-term visitors) due to prolonged Covid-19 restrictions has also weighed on tourism in recent years,’ the analysis read.
‘China is now reopening its economy and reinstating inbound and outbound tourism, which will lead to a pick-up in Chinese arrivals in coming months (although it will take a while to get Chinese arrivals back to “normal” due to initially limited airline capacity and health concerns about travelling).’
Tourism Australia's data revealed a marked increase in Chinese holiday-makers visiting Australia, and Trip.com's analysis indicates a surge in Chinese tourism to Southeast Asia and other nearby destinations.
Have you been affected by the suspension of the Qantas route to Shanghai? Are there other destinations in Asia you're now considering? Share them with us in the comments below.
For Australian globetrotters, particularly those with a penchant for Asian destinations, the latest announcement from Qantas may require a quick reshuffling of travel plans.
In a significant reshuffling of its Asia network, Qantas announced the suspension of a key route that had only recently been reinstated post-pandemic.
The Sydney to Shanghai service is set to be discontinued on 28 July 2024 due to underwhelming demand.
This decision underscored the ongoing challenges faced by the aviation industry in the wake of COVID-19 and changing travel patterns.
The Sydney to Shanghai route was relaunched with much fanfare just nine months ago, but the anticipated resurgence of travellers has not materialised to the extent expected.
Qantas International CEO Cam Wallace expressed disappointment in the route's performance.
‘Since COVID, the demand for travel between Australia and China has not recovered as strongly as expected. In some months, our flights to and from Shanghai have been operating around half-full,’ he said in a statement.
‘That’s why we’ve decided to suspend this route and boost flying to other popular destinations with a new route from Brisbane to Manila and additional flights to Singapore and Bengaluru. This will create more choice for our corporate and leisure customers and make it even easier for them to access the places they need to travel to in Asia.’
The airline plans to maintain its presence in China through partnerships and its existing flights to Hong Kong, with hopes to return to Shanghai when the market conditions are favorable.
For those with existing bookings to Shanghai after 27 July, Qantas has promised to offer a full refund.
In the meantime, Qantas is redirecting its focus towards other popular destinations in Asia.
A new route from Brisbane to Manila is set to launch, and additional flights to Singapore and Bengaluru are being added to the schedule.
These changes are part of a broader strategy to offer more choice and convenience to both corporate and leisure customers, making it easier for them to access key destinations across the continent.
Qantas's network adjustments also include increased flights from Sydney to Singapore, jumping from 14 to 17 return flights per week, and from Brisbane to Singapore, increasing from seven to nine return flights per week.
The broader context of international travel recovery paints a complex picture.
According to AMP's 2023 tourism analysis, the sector has been grappling with the lingering effects of extended border closures, inflationary pressures on airfares, and logistical challenges related to COVID-19.
‘A shortage of Chinese arrivals since 2020 (which used to make up a decent 15 per cent of Australian short-term visitors) due to prolonged Covid-19 restrictions has also weighed on tourism in recent years,’ the analysis read.
‘China is now reopening its economy and reinstating inbound and outbound tourism, which will lead to a pick-up in Chinese arrivals in coming months (although it will take a while to get Chinese arrivals back to “normal” due to initially limited airline capacity and health concerns about travelling).’
Tourism Australia's data revealed a marked increase in Chinese holiday-makers visiting Australia, and Trip.com's analysis indicates a surge in Chinese tourism to Southeast Asia and other nearby destinations.
Key Takeaways
- Qantas has announced the suspension of its Sydney to Shanghai route due to lower-than-expected demand post-pandemic.
- The airline is adjusting its strategy by suspending the underperforming route from July 28, 2024, and focusing on routes with more demand, like new flights to Manila and additional flights to Singapore and Bengaluru.
- Qantas will contact Customers affected by the suspension of the Shanghai route and offer a full refund.
- Despite China reopening its economy and tourism, the recovery of Chinese arrivals to Australia is slower than anticipated, with a significant drop compared to pre-pandemic levels.