Executive Summary
- Chinese airlines are offering unprecedented discounts, including 19 yuan flights to Thailand, driven by intense competition and financial pressures.
- Major carriers like China Southern Airlines (南方航空) and Air China (中国国航) report sustained losses, while budget airlines like Spring Airlines (春秋航空) thrive.
- Live stream ticket sales have become a key revenue channel, with consumers benefiting from flexible, ultra-cheap airline tickets.
- High-speed rail expansion and slow international route recovery are reshaping market dynamics, forcing airlines to adopt ‘volume over value’ strategies.
- Investors should monitor airline adaptability and service differentiation for long-term opportunities in China’s evolving travel industry.
The New Era of Airline Ticket Discounts
Imagine booking a flight from Chengdu to Bangkok for just 19 yuan—less than the cost of a meal. This isn’t a theoretical scenario; it’s the reality for Chinese travelers in 2025, as airline ticket prices hit historic lows. The phenomenon of ultra-cheap airline tickets has captivated consumers and baffled industry analysts, signaling a seismic shift in how airlines operate and compete. For international investors and business professionals, understanding this trend is crucial, as it reflects broader economic pressures and opportunities within China’s travel sector.
The surge in discounted fares, particularly for routes like Thailand, highlights airlines’ desperate attempts to boost cash flow amid prolonged financial strain. With carriers turning to live stream sales and aggressive pricing, the market is witnessing a transformation that could redefine travel affordability and airline profitability for years to come. This ultra-cheap airline ticket trend isn’t just a temporary promotion; it’s a strategic response to overcapacity, rising costs, and evolving consumer behavior.
Live Stream Sales: A Game-Changer for Consumers
Airlines have embraced live streaming on platforms like Douyin (抖音) and Xiaohongshu (小红书) to sell tickets at ‘rock-bottom’ prices. For instance, Spring Airlines (春秋航空) regularly hosts sessions where round-trip flights to Southeast Asia are promoted for as low as 200 yuan. These ultra-cheap airline tickets often come as ‘pass cards’ or vouchers that can be redeemed flexibly, appealing to budget-conscious travelers like Zhang Ping, a frequent flyer who saved nearly 50% on her Chengdu-Hainan routes compared to traditional online travel agencies (OTAs).
The ‘buy now, travel later’ model allows airlines to secure upfront revenue while offering consumers refund options if plans change. However, redemption challenges persist, with limited seat availability during peak periods like holidays. As one industry expert noted, ‘Live streaming has democratized air travel, but it’s also a double-edged sword—airlines gain liquidity at the expense of per-passenger profitability.’
Financial Turmoil in China’s Aviation Sector
Beneath the surface of these enticing deals lies a industry in distress. China’s ‘Big Three’ airlines—Air China (中国国航), China Eastern Airlines (中国东航), and China Southern Airlines (南方航空)—have reported collective losses exceeding 500 billion yuan since 2020, with 2025 half-year results showing deficits of 18.06 billion, 14.41 billion, and 15.33 billion yuan, respectively. These figures underscore the severe impact of pandemic-era disruptions, high fuel costs, and currency fluctuations on carrier balance sheets.
The ultra-cheap airline ticket strategy is a calculated move to minimize losses. As fixed costs like aircraft leases and staff salaries remain high, flying at reduced fares is often more economical than grounding planes. Data from Flight Master (航班管家) reveals that the average domestic economy class ticket price in H1 2025 was 740 yuan, down 6.9% year-over-year and 7.8% below 2019 levels. This ‘volume over value’ approach has become a survival tactic in an oversaturated market.
Cost Pressures and Operational Challenges
Fuel expenses account for over 30% of operating costs for major airlines, exacerbated by volatile oil prices and RMB-USD exchange rate risks. Additionally, the slow recovery of international routes has forced wide-body aircraft onto domestic services, intensifying competition. For example, Air China’s (中国国航) international available seat kilometers (ASK) only reached 90.1% of pre-pandemic levels in H1 2025, leading to domestic capacity gluts. This surplus has driven down passenger revenue per kilometer—a key metric—by 6–8% for leading carriers.
Industry insiders, like Pan Gongsheng (潘功胜), Governor of the People’s Bank of China (中国人民银行), have highlighted the sector’s vulnerability to external shocks. In a recent speech, he emphasized, ‘Aviation must adapt to structural changes, including energy transitions and consumer demand shifts.’ For airlines, this means balancing short-term liquidity with long-term sustainability, even if it means selling ultra-cheap airline tickets.
Market Dynamics and Competitive Pressures
China’s travel landscape is being reshaped by two powerful forces: the expansion of high-speed rail and the uneven rebound of international travel. With over 11,300 direct rail routes—1,900 of which compete directly with airlines—trains have captured a significant share of short-haul travel. Routes under 800 kilometers, like Beijing-Shanghai, have seen airline passenger numbers drop by up to 33% since 2019, as trains offer higher frequency and reliability.
Simultaneously, international route recovery lags, with H1 2025 passenger volumes still 12% below 2019. Carriers like China Eastern Airlines (中国东航) have redirected wide-body planes to domestic markets, exacerbating price wars. The Civil Aviation Administration of China (中国民航局) data shows that the top 10 busiest domestic routes now have 7–12 competing airlines, fueling a race to the bottom on fares. This environment has made ultra-cheap airline tickets a norm rather than an exception.
High-Speed Rail’s Impact on Airline Economics
High-speed rail’s dominance in short-haul markets has forced airlines to cede ground. For instance, on the Chengdu-Chongqing corridor, rail journeys under three hours have reduced airline demand by over 20%. This shift is partly due to rail’s pricing power—tickets often cost 30–50% less than flights—and better punctuality. As one analyst from China International Capital Corporation Limited (中金公司) noted, ‘Airlines must innovate beyond price cuts to retain relevance in competitive corridors.’
The rise of ultra-cheap airline tickets is a direct response to this pressure. By offering fares comparable to rail, airlines aim to recapture price-sensitive travelers. However, this strategy risks eroding brand value and perpetuating losses, especially for full-service carriers unable to match the cost efficiencies of budget rivals like Spring Airlines (春秋航空).
Profitability Divide and Airline Adaptability
While the Big Three struggle, budget airlines are thriving. Spring Airlines (春秋航空) reported a H1 2025 net profit of 11.69 billion yuan, continuing its streak as China’s most profitable carrier. Similarly, Juneyao Air (吉祥航空) and Hainan Airlines (海航控股) returned to profitability, demonstrating the advantages of lean operations and niche targeting. These airlines have capitalized on the ultra-cheap airline ticket trend by optimizing routes and leveraging ancillary revenues.
The key differentiator is adaptability. Spring Airlines (春秋航空), led by Chairman Wang Yu (王煜), has pioneered live stream sales and dynamic pricing, often selling tickets for 200–400 yuan to Southeast Asia. Its focus on point-to-point routes and cost control allows it to profit where others lose. As Wang stated in a recent直播, ‘We’re not just selling seats; we’re selling accessibility and flexibility.’ This approach resonates with consumers seeking value without commitment.
Strategies for Survival in a Crowded Market
Airlines are diversifying revenue streams through partnerships, loyalty programs, and bundled services. For example, China Southern Airlines (南方航空) offers ‘fly now, pay later’ plans, while others collaborate with hotels and tour operators. However, the reliance on ultra-cheap airline tickets remains a double-edged sword. As passenger revenue per kilometer declines—down 4.85% for Spring Airlines (春秋航空) in H1 2025—carriers must balance discounting with service enhancements to avoid commoditization.
Data from the Civil Aviation Data Analysis (民航内参) indicates that airlines investing in digital transformation and customer experience, such as streamlined check-ins and personalized offers, are better positioned to withstand price wars. For investors, this signals that the future winners will be those who innovate beyond fare reductions.
Future Outlook and Investment Considerations
The current phase of ultra-cheap airline tickets is likely to persist as airlines grapple with overcapacity and slow demand growth. However, industry consolidation and regulatory interventions could stabilize prices. The Chinese government’s emphasis on domestic consumption and tourism recovery, as seen in policies supporting the ‘dual circulation’ economy, may provide a lifeline. Investors should monitor airline debt levels, fuel hedging strategies, and international route reopenings for signs of turnaround.
For travelers, the era of accessible air travel is here to stay, with ultra-cheap airline tickets enabling spontaneous trips and broader exploration. Yet, consumers must weigh the trade-offs—limited availability and rigid redemption terms—against the savings. As one frequent flyer shared, ‘I love the discounts, but I always check the fine print to avoid surprises.’
Navigating Opportunities in the Travel Sector
Forward-looking investors can capitalize on this disruption by focusing on airlines with strong cost management and digital agility. Budget carriers like Spring Airlines (春秋航空) and Juneyao Air (吉祥航空) offer resilience, while tech-enabled OTAs may benefit from increased booking volumes. Additionally, sectors adjacent to travel, such as hospitality and experiential tourism, could see growth as more people take to the skies.
The ultra-cheap airline ticket phenomenon underscores a broader trend: China’s travel market is maturing, with value and convenience driving decisions. By staying informed on regulatory changes and consumer preferences, stakeholders can turn temporary turbulence into long-term gains.
Embracing the New Normal in Air Travel
The collapse in airline ticket prices, epitomized by 19 yuan flights to Thailand, reflects deep structural shifts in China’s aviation industry. While major carriers face headwinds, innovative sales channels and consumer-centric models are paving the way for recovery. The rise of ultra-cheap airline tickets has democratized travel, but it also demands smarter strategies from airlines and investors alike.
As the market evolves, prioritize airlines that balance affordability with sustainability. Monitor key indicators like passenger revenue metrics and route diversification to identify potential outperformers. For now, enjoy the bargains, but stay vigilant—the skies may be cheaper, but the journey ahead requires careful navigation.