Air passenger numbers in China during the Labor Day holiday (May 1-5) declined for the first time since COVID-19, driven by high oil prices.
According to China's Ministry of Transport, civil aviation passengers averaged 2.108 million per day during the May 1-5 Labor Day holiday, down 5.74% from a year earlier. In contrast, total travel volume over the same period rose 3.49% to 1.517 billion. While overall travel demand grew, air travel demand contracted.
Experts point to the recent surge in oil prices as the main cause. "Jet fuel typically accounts for 30-40% of an airline's operating costs, but in April that share climbed to 55-70% of total costs," said Li Yanwei, a professor at the Civil Aviation University of China. "This is the highest level in half a century." Fuel surcharge hikes alone were insufficient to cover the rising costs, forcing airlines to cancel some flights, he explained. During the holiday, daily flights averaged about 15,700, down 2.6% from last year.
Higher ticket prices also contributed to the passenger decline. According to flight statistics platform Hangbanguanjia, the average domestic airfare during the Labor Day holiday (economy class, including taxes) stood at around 925 yuan, up 9.7% from last year. The surge was largely driven by domestic fuel surcharges, which rose fivefold from March starting April 5. As price-sensitive travelers opted for high-speed rail over flights, rail passengers averaged 21.275 million per day, up 4.6% from a year earlier.
Airfares have plunged since the holiday, adding pressure on airlines. On local travel platform Hanglyuzongheng, routes from Shanghai to Sanya, Haikou, Qingdao and Quanzhou are being sold for around 200 yuan (about 42,000 won). Routes from Beijing to Haikou, Xi'an and Yichang are also being offered at around 300 yuan. Industry voices say even additional fuel surcharges cannot fully offset the rise in jet fuel costs, with some complaining that certain routes lose money with every ticket sold.
