Mods - We had a thread last year that discussed the issue of China and the impact of the politics on AC's routes. IIRC, the thread was closed. Therefore, not sure where this post should be moved to.
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In today's
Second Quarter 2019 Management’s Discussion and Analysis of Results of Operations and Financial Condition
page 14
"The 2.7% traffic increase which reflected traffic growth on all major Pacific services with the exception of services to China and Hong Kong. The geopolitical situation between Canada and China continued to negatively impact travel demand in the quarter, particularly business- related traffic demand between Canada-China/Hong Kong. In the second quarter of 2019, Air Canada reduced capacity to China to better align it with demand. "
and
"Cargo Revenues
Cargo revenues of $177 million in the second quarter of 2019 and $354 million in the first six months of 2019 decreased $23 million or 12.1% and $14 million or 4.1%, respectively, from the same periods in 2018. Compared to the 2018 periods, cargo traffic and yield decreased 7.0% and 5.4%, respectively, in the second quarter of 2019, and 2.3% and 1.8%, respectively, in the first six months of 2019. Demand for air cargo decreased industry-wide, particularly in the Atlantic and Pacific markets, causing reductions in volumes and putting downward pressure on yields. This industry-wide situation reflects the impact of external factors, primarily centered around on-going trade disputes. "
https://www.aircanada.com/content/da...019_MDA_q2.pdf
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NOTE: I am looking at this as a reader. I am not in finance.
I wonder if this
partly explains not just the shift in aircraft last year e.g., the B789 on YVR-HKG replacing the B777-300ER (28J HD), bur also the very reduced prices on flights to China as well as a large supply of seats on Aeroplan for routings to Asia via PEK and PVG (versus other options).
I welcome comments from others who can offer insight. Thank in advance.