Airlines expected to announce record Q1 performance

[Photo by Yonhap]

Due to the increased demand for overseas travel during the winter peak season, South Korean airlines are expected to announce their highest-ever first-quarter performance in 2024.

According to statistics released by the Korea Civil Aviation Association (KCA) on Thursday, the number of international flights between Incheon International Airport and Gimpo International Airport totaled 92,499 during the first quarter of the year (from January 1st to March 20th). This is an increase of almost 50 percent compared to about 62,000 flights operated during the same period a year ago.

Once the performance data for the end of March 2024, which was not included in the calculation, is reflected, it is expected that the number of international flights in the first quarter of 2024 at major Korean airports will surpass the previous record set in the first quarter of 2019. According to the aviation industry, international passenger traffic in January and February increased by 58 percent on-year, and airfares remained at the strong level they were at in 2023.

Major Korean airlines saw improvements in both the number of flights and passenger traffic in the first quarter of 2024. Korean Air saw a 31 percent increase in domestic and international flights in the first quarter of the year, with 39,890 flights compared to the same period in 2023, and the number of passengers during the same period increased by 29 percent to 6.35 million. For its part, Asiana Airlines recorded an increase of about 16 percent in the number of flights in the first quarter of 2024, with about 25,000 flights compared to around 21,600 flights a year ago, and passenger traffic improved by 25 percent.

Korean low-cost carrier (LCC) Jeju Air, saw a 14.7 percent increase in flights and a 7.7 percent increase in passenger traffic in the first quarter compared to last year. Fellow Korean LCCs T’way Air and Jin Air also saw increases of 5 percent and 4 percent respectively, in the number of flights compared to 2023.

The attention is now focused on whether LCCs, which posted a surprise performance in the first quarter of 2023, will see a repeat of record profits. Jin Air is being praised for effectively meeting the demand for the 2023 winter peak season travel by deploying large-capacity B777 aircraft on routes to Japan and Southeast Asia. There are also expectations that it may surpass its profit of 84.9 billion won from 2023 to set a new record.