Cooling Off Period – Mixed messages in the US and China air traffic market

The US-China aviation market has stagnated. For the first time in years growth will have come to a halt as of March 2019. The 12-month rolling average of capacity between the two nations will have stopped growing, according to OAG data.

In a world where air travel growth typically follows economic growth because consumers tend to prioritise travel when they have a bit more disposable income, this is surprising. China’s economy may be slowing but by the standards of most countries’ growth of 6.3%, which is being forecast for this year by the OECD, is enviable. Meanwhile in the US, the economy is expected to grow by 2.7% this year, respectably above the OECD average. It’s not hard to attribute the cooling off in air services to the face-off taking place between China and America. But there are mixed messages.

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