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United Airlines to exit Hangzhou from 14 October 2017

08/02/2017| 11:31:36 PM| 中文

After reporting the Pacific as its worst-performing operation in Q2 2017, United Airlines will exit Hangzhou in October 2017, 15 months after launching three weekly 787 flights in July 2016.

After reporting the Pacific as its worst-performing operation in Q2 2017, and the only region with a negative PRASM year-on-year, United Airlines will exit Hangzhou in Oct-2017, 15 months after launching three weekly 787 flights in July-2016.

Hangzhou, initially launched as a Shanghai alternative, has under-performed and United has a better option by directing growth through nearby Shanghai. Further, United's new management wants to re-balance its network by improving domestic and limiting international expansion.

In the seven months from United's launch of Hangzhou through January-2017 (latest data available), United's Hangzhou service averaged only a 61% load factor, according to US DOT data. Hangzhou's performance was significantly below United's average mainland China load factor of 81% for the same period.

As with British Airway's exit from Chengdu, United's exit from Hangzhou will provoke questions about the viability of China's secondary city long-haul routes.

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TAGS: United Airlines | Hangzhou
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