United’s Strategy Guide: What Lies Ahead for China?

This past summer has seen unprecedented international travel growth for airlines, particularly American Airlines, Delta Air Lines, and United Airlines, with southern Europe emerging as a popular year-round destination.

Airlines are optimistic about ongoing demand for international travel as they prepare for summer 2025. American Airlines has already announced new routes to cities such as Athens, Milan, Rome, Edinburgh, and Madrid.

However, challenges remain in the Asian market, especially regarding travel to China. Delta Air Lines has canceled plans to resume its Los Angeles-Shanghai route, while many Western airlines are discontinuing routes to China due to airspace restrictions related to Russia.

In a recent discussion, Patrick Quayle, United Airlines’ senior vice president of global network planning and alliances, addressed the headwinds facing U.S. airlines in China. Before the pandemic, United led in capacity to China. The COVID-19 crisis halted operations due to various restrictions set by the Chinese government, complicating the process for travelers.

As COVID-19 restrictions have eased, Chinese and U.S. governments are negotiating a bilateral agreement to gradually increase flight capacity. For the upcoming winter schedule, United Airlines is set to operate three daily flights to mainland China, including a new route from Los Angeles to Shanghai.

There are concerns within the industry regarding competitive disadvantages for U.S. airlines. Airspace restrictions due to the geopolitical situation give Chinese carriers an edge. Quayle emphasized the need for fair competition where airlines can contest on service, price, and network without political barriers.

United is also expanding into unique European routes, including flights to Marrakech, and has adopted a strategy of offering new experiences that were previously inaccessible to travelers. This approach helps differentiate United in the market.

Quayle noted that all of United’s hubs are profitable, which is not the case for many competitors. While some hubs may perform better than others, each is contributing positively to the company’s bottom line.

In the domestic market, United is observing a shift as low-cost carriers struggle financially, leading to reduced capacity and a more stable booking environment for United. The airline expects to maintain profitability in the evolving landscape as competitors recalibrate.