The news came on the heels of a detailed government plan that included a directive to domestic carriers to cancel or delay orders of new aircraft next year, a potential blow to manufacturers such as Boeing and Airbus, who have placed high hopes on China as a key growth market.

In a notice to airlines, the Civil Aviation Administration of China, the government body in charge of the industry, also ordered them to return leased aircraft and sell or convert old ones to carry cargo, while cutting the number of aircraft imported from abroad.

CAAC said the directives were aimed at reducing excessive competition in the domestic industry while making Chinese airlines more competitive internationally. The government also promised to cut taxes, raise subsidies and improve infrastructure for airlines, while encouraging consolidation in the crowded sector.