Loong Air - Strategic Analysis and Outlook Report (2026)

Loong Air has positioned itself as a formidable player in China’s aviation sector.

With a fleet that has grown to 74 aircraft and operations spanning more than 140 routes, this Hangzhou-based carrier demonstrates how strategic infrastructure investments and fleet modernization can drive sustained growth in one of the world’s most competitive air travel markets.

Table of Contents

• Fleet Expansion Strategy: A320neo Family Focus

• Training Infrastructure: Building for Long-Term Ca …

• International Route Development: Southeast Asia Ex …

• Competitive Position in China’s Aviation Market

• Outlook for 2026 and Beyond

• Challenges and Risk Factors

• My Final Thoughts

Fleet Expansion Strategy: A320neo Family Focus

Loong Air’s fleet modernization program centers on the fuel-efficient Airbus A320neo family aircraft. The carrier has secured multiple lease agreements throughout 2025 that will significantly expand its operational capacity.

CDB Aviation signed agreements in July 2025 for six Airbus A321neo aircraft scheduled for delivery in 2027. These aircraft represent the largest member of the A320neo family and offer superior fuel efficiency, reduced carbon emissions, and extended range capabilities.

The A321neo’s enhanced performance aligns perfectly with Loong Air’s dual objectives of expanding its route network while maintaining cost efficiency.

Fleet Expansion Timeline

2025: 74 aircraft operational
2027: Six A321neos from CDB Aviation
2027: Three A320neos from BOC Aviation
Total Planned Additions: 9 next-generation aircraft

Additionally, BOC Aviation announced in October 2025 that it would lease three Airbus A320neo aircraft to Loong Air, also scheduled for 2027 delivery. All aircraft will be powered by CFM LEAP-1A engines, recognized for their fuel efficiency and lower maintenance requirements.

This calculated approach to fleet expansion demonstrates Loong Air’s commitment to operational efficiency. The A321neo can accommodate more passengers than the standard A320, enabling the airline to boost capacity on high-demand routes while keeping operational costs under control.

Training Infrastructure: Building for Long-Term Capability

Loong Air’s most significant operational milestone in 2025 was the establishment of its training facility in Hangzhou. The first CAE-built A320 full-flight simulator became ready-for-training in December 2025, marking a transformative moment for the airline’s pilot development program.

The training center represents a substantial commitment to self-sufficiency and operational excellence. CAE will provide Loong Air with three Airbus A320 full-flight simulators and three flight training devices, with two additional simulators scheduled to become operational in 2026.

This infrastructure investment addresses a critical industry challenge. According to CAE’s 2025 Aviation Talent Forecast, more than 98,000 new commercial pilots will be needed in the Asia-Pacific market over the next decade.

By establishing in-house training capabilities, Loong Air can accelerate pilot readiness while reducing dependency on external training providers.

International Route Development: Southeast Asia Expansion

Loong Air has demonstrated aggressive international expansion in 2025, particularly targeting Southeast Asian markets aligned with Malaysia’s Visit Malaysia 2026 tourism campaign.

The carrier launched charter services between Shenzhen and Malaysian destinations including Kuching and Tawau in December 2025. These charter operations serve as market tests for potential scheduled services.

Forward bookings have proven strong enough that Loong Air is evaluating a scheduled twice-weekly service from April 2026, pending approval from the Civil Aviation Authority of Malaysia (CAAM). This approach allows the airline to validate demand before committing to scheduled operations.

International Expansion Highlights (2025)

Xi'an to Kuala Lumpur: New scheduled route launched July 2025
Hangzhou to Singapore via Zhangjiajie: Inaugurated October 2025
Shenzhen to Kuching: Charter service launched December 2025
Shenzhen to Tawau: Charter service launched December 2025
Xi'an to Dushanbe: Operating Tuesdays and Fridays
Xi'an to Bangkok: Operating Wednesdays, Fridays, and Sundays

The timing of these routes aligns with Malaysia’s announcement of 21 new international routes before Visit Malaysia 2026. Loong Air is one of six Chinese carriers expanding operations to Malaysia, positioning itself to capture growing tourism and business travel between the two countries.

Competitive Position in China’s Aviation Market

China’s domestic aviation market has shown resilience in 2025, with domestic traffic surpassing pre-pandemic 2019 levels year-on-year. However, international passenger volumes continue recovering more slowly.

This market dynamic favors Loong Air’s operational model. As a carrier focused primarily on domestic routes with selective international expansion, the airline can leverage strong domestic demand while carefully building international operations.

China’s three largest airlines posted their first collective quarterly profit in a year during Q3 2025, indicating broader industry recovery. This improving financial environment should benefit smaller carriers like Loong Air that have maintained disciplined growth strategies.

Outlook for 2026 and Beyond

Several factors position Loong Air favorably for continued growth through 2026 and subsequent years.

Infrastructure Advantage: The new training facility provides operational independence and cost control. As the training center reaches full capacity in 2026, Loong Air will be better positioned to handle pilot recruitment and development internally.

Fleet Modernization: The nine next-generation aircraft scheduled for 2027 delivery will provide approximately 12% fleet growth based on current fleet size. These fuel-efficient aircraft will reduce per-seat operating costs while expanding capacity.

Market Positioning: Hangzhou serves as a thriving technology hub attracting young professionals and business travelers. This demographic provides a stable customer base for both domestic and international services.

Regional Connectivity: The carrier’s strategic expansion into Southeast Asian markets, particularly Malaysia and Singapore, taps into growing regional travel demand. These routes complement domestic Chinese operations and diversify revenue sources.

Lessor Relationships: Strong partnerships with major lessors including CDB Aviation and BOC Aviation provide flexible access to modern aircraft without large capital expenditures. This approach preserves financial flexibility during expansion phases.

Challenges and Risk Factors

Despite positive momentum, Loong Air faces several operational challenges that executives must navigate carefully.

Competition from China’s “Big Three” carriers (Air China, China Eastern, China Southern) remains intense, particularly on high-volume domestic routes. These major carriers have substantially larger fleets, more extensive route networks, and deeper financial resources.

International route development carries execution risks. Converting charter operations to scheduled services requires sustained demand, regulatory approvals, and competitive pricing. The carrier’s success with Malaysian routes will be tested when charter services transition to regular schedules in 2026.

China’s aviation industry faces geopolitical headwinds, including tensions with Japan that have dampened travel demand on certain routes. Regional geopolitical factors could affect international expansion plans.

The pilot shortage affecting the entire Asia-Pacific region puts pressure on recruitment and training programs. While Loong Air’s new training facility addresses this challenge, competition for experienced pilots remains fierce across the industry.

My Final Thoughts

Loong Air has constructed a solid foundation for sustained growth through strategic infrastructure investments and disciplined fleet expansion. The training center in Hangzhou represents a particularly astute investment that will pay dividends for years by reducing training costs and accelerating pilot development.

The carrier’s approach to international expansion demonstrates market sophistication. By testing Southeast Asian routes with charter services before committing to scheduled operations, Loong Air minimizes financial risk while gathering essential demand data. This methodical approach contrasts sharply with carriers that have overextended on international routes.

The 2027 delivery schedule for nine next-generation aircraft provides adequate time for route planning, crew training, and market development. This timeline allows the airline to integrate new aircraft systematically rather than absorbing rapid fleet growth that could strain operational systems.

For 2026 specifically, watch the transition of Malaysian charter routes to scheduled services. This will signal whether Loong Air can successfully convert temporary tourism demand into sustainable international operations.

Success in Malaysia could provide a template for expansion into other Southeast Asian markets, including Thailand, Vietnam, and Indonesia.

The carrier’s competitive advantage lies not in being the largest or lowest-cost operator, but in operational efficiency, strategic route selection, and infrastructure investments that larger carriers may overlook.

This differentiated approach should serve Loong Air well as China’s aviation market continues its post-pandemic recovery and maturation.