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Air France-KLM Sees Strong China-Europe Demand Despite Russian Airspace Closure

3 min read
Air France-KLM Sees Strong China-Europe Demand Despite Russian Airspace Closure
Air France-KLM reports strong China-Europe demand and 89% load factor in Asia, fueled by China's visa-free policy, though the Russian airspace ban limits full recovery.

Key Points

  • 1Air France-KLM reported a 6% unit revenue increase from its Asian market in the first three quarters of 2025.
  • 2China's visa-free policy for over 30 European nations is driving strong inbound business and leisure travel demand.
  • 3The Russian airspace ban adds two extra hours and costs, creating a competitive disadvantage against Chinese carriers.
  • 4The group maintains a long-term commitment to China, planning flight expansion once operational circumstances improve.

The Franco-Dutch airline group Air France-KLM remains optimistic about the China-Europe travel market. This is true despite persistent geopolitical headwinds. The group cites strong demand and healthy financial figures.

Market Resilience and Growth Drivers

Paris and other European cities remain top destinations. This is true for Chinese travelers, according to the airline. The underlying China-Europe travel market is robust, the group states. Steven van Wijk, Greater China general manager at Air France-KLM, expressed confidence. He noted a long-term commitment to the Chinese market.

In the first three quarters of 2025, the group posted strong results. Unit revenue from its Asian market grew 6% year-on-year. The passenger load factor reached a high 89%, according to its earnings. This shows a very healthy financial performance.

Visa Policy and Travel Trends

Strong inbound demand from Europe is a key driver. This is fueled by China's visa-free policy. The policy covers travelers from more than 30 European nations. This visa waiver was extended through 2026. This move boosts both business and leisure travel. The policy allows up to 30-day stays for many European citizens.

Growing China-France trade ties also underpin the optimism. Bilateral trade reached US$68.75 billion in the first 10 months of 2025. This marked a 4.1% year-on-year increase. France is China's third-largest European trading partner. China is France’s top Asian trading partner. The trend toward independent Chinese travellers is also a benefit. These travelers often extend their stays. They also explore smaller European cities. This plays to Air France-KLM's extensive European network strength. The company also noted a rise in business-class bookings.

Competitive Headwinds and Operational Challenges

Despite the strong demand, the group faces a major operational challenge. The Russian airspace ban on European carriers is a significant headwind. This ban adds costs and roughly two extra hours of flight time for China-Europe flights. This is a competitive disadvantage.

Chinese carriers are permitted to use Russian airspace. This allows for shorter flights and lower operating costs. As a result, Air France-KLM has lost some market share. European airlines are urging the European Union to act. They want the EU to level the playing field against rivals using the shorter routes.

  • The ban adds significant fuel and crew costs.
  • It prevents a full recovery to pre-pandemic capacity levels.
  • It makes secondary Chinese cities less profitable to serve.

For the current winter season, the group serves four destinations. These are Beijing, Shanghai, Hong Kong, and Taipei. The group is ready to launch more flights. They will add frequencies once the Russian airspace situation changes. "We just need to have better operational circumstances," van Wijk stated. For more on the industry, visit commercial aviation news at flying.flights.

Industry Outlook

Industry trends support the group's long-term view. The International Air Transport Association (IATA) reported positive forecasts. Asia-Pacific traffic growth is the largest contributor globally. Load factors in the region are projected to reach 84.4% in 2026. This would be a new record for the region. China and India are leading this regional expansion. This growth is driven by rising tourism and growing middle classes.

Topics

China-Europe AviationAir France-KLMRussian AirspaceVisa-Free TravelCommercial AviationIATA

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