Now is a good time to buy a cheap plane ticket in China, HSBC tells travellers

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Carriers adding more routes and economic uncertainty on the mainland will put pressure on airlines to cut prices, HSBC says

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Travellers waited to board a plane at an airport in Chengdu, China. Photo: Reuters

Mia Castagnone

Published: 4:00pm, 1 Nov 2024

Airfare prices in China will continue to fall until the end of the year, as the travel off season begins and carriers grapple with tepid domestic consumption, HSBC said.

The addition of more routes and economic uncertainty on the mainland will put pressure on airlines to cut prices, according to an HSBC global research report dated October 31.

Prices peaked in early October, around China’s weeklong National Day holiday. Alipay, a Chinese mobile payment service operated by Ant Group, reported a surge in outbound and inbound tourism transactions during the holiday. Alipay is the fintech affiliate of Alibaba Group Holding, owner of the Post.

During the first four days of the holiday, the number of transactions made via Alipay in overseas markets surged 60 per cent from a year earlier. Malaysia, South Korea, Thailand, Hong Kong and Singapore recorded the fastest growth in transactions.

After National Day, airfares fell rapidly from October 8 to the end of the month, according to flight booking platform Umetrip. Specifically, the average price of a domestic ticket in China fell 11 per cent, while international trips fell 23 per cent.

In spite of the economic support measures that were launched by Beijing starting in late September, consumers are still in belt-tightening mode amid an economic malaise and weak expectations for income growth.