S.Korean Budget Airlines Cut 900 Round-Trip Flights Amid Soaring Oil Prices

SEOUL, May 10 (Bernama-Yonhap) -- South Korean low-cost carriers have cut 900 round-trip flights and introduced unpaid leave and other emergency measures as the ongoing conflict in West Asia has driven up fuel prices, industry officials said Sunday, Yonhap News Agency reported.

The flight cuts came as jet fuel prices surged following the US-Iran conflict. As some airlines have yet to finalise their June schedules, the number of flight reductions is expected to increase further, according to the officials.

Jeju Air Co., South Korea's largest budget airline, decided to cut 187 round-trip international flights, equivalent to 4 per cent of its total operations, on routes from Incheon, west of Seoul, to Bangkok, Singapore, and the Vietnamese cities of Da Nang and Phu Quoc during May and June. Since late April, it has also suspended its Vientiane route for two months.

Jin Air Co. cut 176 round-trip flights to destinations, including Guam and Phu Quoc, through the end of this month. Further reductions are expected once its June schedule is finalised.

Among full-service carriers, Asiana Airlines Inc. has cut 27 round-trip flights on six routes, including Phnom Penh and Istanbul, through July following the outbreak of the West Asia conflict.

Korean Air Co., South Korea's largest carrier, has not yet adjusted its flight operations but said it is closely monitoring the situation under an emergency management system.

"Travel demand for medium- and long-haul routes has weakened due to the growing burden of fuel surcharges," an airline official said.

Another industry official said some Southeast Asian routes now require additional refuelling stops, and higher fuel prices have sharply increased such extra refuelling costs.

Jet fuel prices have surged 2.5 times since the outbreak of the war.

The average Singapore jet fuel price, which is used as the benchmark for fuel surcharges, stood at US$214.71 per barrel from March 16 to April 15, up 150 per cent from two months earlier.

Amid worsening business conditions, Korean Air, Asiana Airlines, Jin Air, T'way Air Co. and other airlines have implemented emergency management measures.

T'way Air and Jeju Air have introduced unpaid leave programmes, while Jin Air has postponed safety incentive payments to employees.

Airlines posted solid earnings in the first quarter, but many of them are expected to slip into losses in the second quarter as the impact of the conflict is felt through soaring oil prices, shrinking travel demand and a weaker Korean won, according to analysts.

Budget airlines are particularly vulnerable due to their weaker financial conditions compared with major carriers.

T'way Air is already facing a cash crunch after posting losses for two consecutive years, with its debt ratio exceeding 3,400 per cent as of the end of 2025.

Air Premia Co. was also in a state of capital impairment at the end of last year. If the company fails to resolve the issue, its operating licence could be revoked, industry watchers said.

-- BERNAMA-YONHAP