Core Viewpoint - The Chinese government has decided to resume group travel for Chinese citizens to Canada, leading to a significant increase in flight searches to various Canadian cities [1] Group 1: Flight Demand and Growth - The international flight volume to Canada from China has increased by 28.1% from January to October this year compared to the same period last year [1] - The number of round-trip flights on the China-Canada route is projected to reach 319 by October 2025, representing a year-on-year increase of over 2.5 times [1] - Currently, the recovery rate of flights between China and Canada is only 35.6% compared to the same period in 2019, indicating a slower recovery similar to the China-U.S. route, which has a recovery rate of 29.7% [1] Group 2: Regulatory Constraints - The slow recovery of China-Canada flights is partly due to restrictions imposed by Canada on the number of flights operated by Chinese airlines, initially limiting them to no more than six round-trip flights per week [4] - After the removal of the restriction on direct flights from Beijing to Canada, the allowed number of flights was increased to 24 per week, but this is still significantly lower than the pre-pandemic level of over 70 flights per week [4] Group 3: Airline Operations and Market Dynamics - Currently, six Chinese airlines are operating on the China-Canada route, with Air Canada being the only Canadian airline flying this route [4] - In October, the top three routes for China-Canada flights were Shanghai Pudong to Vancouver (80 flights), Beijing Capital to Vancouver (70 flights), and Shanghai Pudong to Pearson (36 flights) [4] - Despite a year-on-year increase of over 2.1 times in Air Canada's flight volume in October compared to 2024, it still represents a 65.3% decrease compared to 2019 [6] Group 4: International Route Landscape Changes - The recovery of the China-U.S. route is also hindered by airspace restrictions, with Chinese airlines required to avoid Russian airspace, similar to the situation faced by European airlines on their routes [7] - The domestic airlines in China have a cost advantage on European routes since they do not need to avoid Russian airspace, leading to a shift in focus towards these markets [8] - Domestic airlines have seen a recovery rate of 103.7% for international flights compared to 2019, while foreign airlines have only achieved a recovery rate of 65.4% [8]

Core Insights - The recovery of the China-Canada route is lagging behind other international routes, similar to the China-US route, with a current recovery rate of only 35.6% compared to pre-pandemic levels in 2019 [1][3] - The number of international flight tickets to Canada from China has increased by 28.1% year-on-year from January to October this year [1] - The number of flights on the China-Canada route has significantly increased, with a total of 319 round-trip flights scheduled for October 2025, representing a growth of over 2.5 times [1] Flight Recovery Challenges - The slow recovery of the China-Canada flights is partly due to restrictions imposed by Canada on the number of flights allowed for Chinese airlines, initially limiting them to no more than six round-trip flights per week [3] - Although Canada has lifted the restriction on direct flights from Beijing, the approved flight volume remains significantly lower than pre-pandemic levels, which exceeded 70 flights per week [3][4] Airline Operations - Currently, six mainland Chinese airlines operate on the China-Canada route, with Air Canada being the only Canadian airline flying this route [4] - In October, the top three routes by flight volume were Shanghai Pudong to Vancouver (80 flights), Beijing Capital to Vancouver (70 flights), and Shanghai Pudong to Pearson (36 flights) [4] Market Dynamics - Domestic airlines currently hold a larger share of the flight volume on the China-Canada route, indicating that Air Canada has not fully utilized its approved flight rights [6] - Despite a year-on-year increase of over 2.1 times in Air Canada's flight volume in October, it still represents a decline of 65.3% compared to 2019 [6] International Route Landscape - The recovery of the China-US route is also hindered by similar restrictions, with Chinese airlines required to avoid Russian airspace, impacting operational efficiency [7] - The competitive landscape for international routes is changing, with domestic airlines increasing their market share from 59.1% in 2019 to 69.6% in the first half of this year, while foreign airlines' share has decreased correspondingly [8]