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Photo = Yonhap news |
[Alpha Biz= Paul Lee] According to the aviation industry on May 21, the operating profits of domestic low-cost carriers (LCCs) all declined in the first quarter compared to the previous year.
Jeju Air and T’way Air posted losses of 32.7 billion KRW and 35.5 billion KRW, respectively, turning to the red. Jin Air and Air Busan remained profitable with operating profits of 58.3 billion KRW and 40.1 billion KRW, but these figures represent approximately a 40% decline from the prior year.
While international passenger traffic reached a record high of 23.28 million in Q1, the significant increase was mainly driven by major carriers like Korean Air and Asiana Airlines, with LCCs experiencing relatively modest growth.
Typically, the period from April to early June is considered an off-season due to the school term and lack of holidays, leading to decreased air travel demand. Although March saw increased overseas travelers due to the Samiljeol (March 1st) holiday, demand has noticeably declined from April onward. May follows the same pattern, with airports becoming relatively quiet after the Children’s Day holiday, prompting airlines to redouble efforts to attract passengers.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
