Check-in counters for Jeju Air at Terminal 1 of Incheon International Airport remain nearly empty, Sunday. Yonhap
Mounting fuel costs and weakening travel demand are sparking concerns of sweeping restructuring across Korea’s low-cost carrier (LCC) industry, as budget airlines slash international flights, expand unpaid leave programs and implement emergency cost-cutting measures to weather intensifying financial pressure.
The aviation sector has come under strain from a combination of soaring global oil prices and a weakening Korean won, with budget carriers bearing the brunt of the impact.
Industry officials said the sharp rise in aviation fuel prices — triggered by escalating instability in the Middle East — has rapidly increased operating costs for LCCs, and the rising ticket prices are dampening consumer demand.
Roughly 900 round-trip international flights have already been cut, largely among LCCs, amid the armed conflict in the Middle East. The figure is expected to rise further as travel demand weakens.
The jets of low-cost carriers are seen at Incheon International Airport, July 8, 2024. Newsis
Airlines are increasingly trimming less profitable routes, as fuel expenses — one of the largest components of airline operating costs — continue to climb sharply.
Despite higher fuel surcharges, carriers continue to struggle with elevated costs. Jin Air suspended 131 flights on 14 routes this month, after canceling 45 round-trip flights on eight routes last month. Air Premia plans to suspend a total of 73 flights until August.
Airlines are also rapidly reshaping route strategies. Budget carriers are increasingly expanding short-haul China routes, where lower fuel consumption and quicker aircraft turnaround times offer operational advantages.
Parata Air recently secured routes linking Incheon with Shenzhen, Chengdu and Chongqing, while Eastar Jet obtained rights for routes connecting Incheon and Xiamen and Hohhot.
Source: Korea Times News
