China rates to Europe saw an 8% drop in rates out of Shanghai comparing to a previous month in the same year. Rates increased slightly on trans-pacific routes, highlighted by increases of 4% to the U.S.
Increased capacity from passenger airlines returning more flights to service contributed to the rate-growth pause on certain trade lanes, but the supply bump should be temporary because U.S. and other airlines are trimming winter schedules in anticipation of a steep drop in leisure travel with schools back in session.
China has become the world's largest aviation market by seats as capacity in the US continues to be cut.
It has been predicted for some time that China will eventually take over from the US, which has held the position as long as aviation has existed, although no one could have predicted it would come this early.
The International Air Transport Association (IATA) had predicted the change would occur 2024; however the impact of the COVID-19 virus on aviation markets - and China's bounce back - brought forward this major turning point.
While the accolade is somewhat bittersweet, and probably temporary, the result does affirm the fact that China's aviation market is beginning to improve after being devastated by COVID-19.
Significantly, the entirety of the capacity in China is its domestic market which makes up more than 95% of the total.