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Embraer: Chinese Airlines Must Explore 900 Underserved Markets

11/18/2025

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Summary

Story summary

Embraer argues that long-term profitability for Chinese airlines depends on shifting from competitive trunk routes to underserved "blue ocean" markets.
The report notes passenger traffic exceeds pre-pandemic levels, while margins remain pressured as over 65% of domestic flights concentrate on major routes.
Patrick Peng, managing director of Embraer China, says profitability requires operational excellence and strategic market expansion, and the report identifies over 900 underserved city pairs, including 185 domestic routes.

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Story summary

Embraer argues that long-term profitability for Chinese airlines depends on shifting from competitive trunk routes to underserved "blue ocean" markets.
The report notes passenger traffic exceeds pre-pandemic levels, while margins remain pressured as over 65% of domestic flights concentrate on major routes.
Patrick Peng, managing director of Embraer China, says profitability requires operational excellence and strategic market expansion, and the report identifies over 900 underserved city pairs, including 185 domestic routes.