China's domestic aviation market is undergoing a fundamental reorientation driven by the world's largest high-speed rail network. Rather than shrinking overall, the sector is reallocating capacity away from short-haul routes where rail now dominates toward longer distances where air travel retains a clear advantage.
Market Capacity Trends Since 2016
Domestic airline capacity across China rose 65% between August 2016 and August 2026. Growth proved highly uneven by distance. Routes exceeding 800 km recorded a 91% increase in available seats. Routes shorter than 800 km experienced a 7%…