China's Datong Airport: How Subsidies Turned a Coal Hub into a Budget International Gateway

The former coal-industry stronghold of Datong in north China’s Shanxi Province is rapidly emerging as an unexpected hub for budget international travel.

Datong Yungang International Airport (DAT) is attracting a rising wave of young Chinese travelers. These passengers are choosing to bypass established mega-hubs like Beijing and Shanghai. They are instead opting for Datong due to highly competitive, low-cost fares on new international routes.

The Low-Fare Sanctuary Strategy

This shift is driven by a strategic move from the local government. Datong is pivoting its economy away from its coal-centric past. Tourism and global exchange are now key pillars of this coal hub economic transition.

As part of this plan, the city government introduced airline subsidies to boost connectivity. These subsidies effectively lower operating costs for carriers. This allows for the ultra-competitive ticket prices now attracting youth from across the nation. For example, one traveler secured a one-way direct ticket to Hong Kong for just 173 yuan (about $24.70), according to the source.

Irresistible Price Gap

The price difference is a major draw for Gen Z travelers China. During off-peak periods, a round-trip ticket from Beijing to Seoul can cost around 2,000 yuan. In stark contrast, a comparable flight from Datong can cost less than 500 yuan. This stark price gap has earned the city the nickname “low-fare sanctuary” on Chinese social media. Terms like “Datong cheap flights” have trended often on lifestyle apps like Rednote.

Datong's location also works in its favor. The city is just a two-hour high-speed train ride from Beijing. This makes the Datong Yungang International Airport easily accessible to travelers from the Beijing-Tianjin-Hebei region.

Expanding Secondary Airport Connectivity

Since late 2024, Datong Yungang International Airport has significantly expanded its network. It launched direct routes to Hong Kong and overseas destinations. These include Bangkok, Ulaanbaatar, Moscow, and Seoul.

Data confirms the airport is now a magnet for out-of-province travelers. Over 52 percent of passengers on the Bangkok route come from outside Shanxi Province aviation authorities reported. The new routes' demographic is notably young. Over 56 percent of passengers are aged between 20 and 45.

Industry Impact and Opportunities

This trend highlights a growing willingness among passengers to use secondary airports. They prioritize cost savings over the convenience of major hubs. The strategy offers a model for other regional airports globally.

• Airlines: Smaller carriers and low-cost operators benefit from the subsidies. This allows them to establish new, profitable routes. The Datong-Hong Kong route has maintained an approximately 85 percent occupancy rate since its launch.
• Airports: Datong Yungang International Airport (DAT) elevates its international profile. It is now opening vital channels for global investment and cross-border exchange.
• Passengers: Travelers gain access to significantly cheaper international air travel. This makes global adventures more accessible on a shoestring budget.

Affordability is not the only factor. Many young travelers are turning their layovers into cultural stopovers. Datong, once the capital of the Northern Wei Dynasty, offers a rich history. Visitors explore sites like the Yungang Grottoes, a UNESCO World Heritage site. This blending of budget travel with cultural exploration is a key component of the new travel experience. For more commercial aviation news, visit flying.flights.

This trend of leveraging secondary airport connectivity with strategic subsidies presents both an opportunity and a challenge. Sustained local government funding is essential for the long-term viability of these routes. However, the success of Datong-Seoul flights and others demonstrates strong passenger demand for value-driven travel options.