Korea’s budget carriers expand overseas flights to improve earnings

[Source : T’way Air]

Korean low-cost carriers are aggressively expanding flights on long-haul routes as they actively respond to the recovery in the international air travel demand after borders reopen amid easing Covid measures.

According to the Korea Civil Aviation Association, the number of passengers on the international flights on Korea’s top five budget carriers - Jeju Air Co., Jin Air Co., T’way Air Co., Air Busan Co., and Air Seoul - reached 958,541 in November, nearly tripling from July.

The sharp growth comes from the surge in international air travel demand, especially to Japan and Southeast Asian countries, as Covid restrictions were eased. As global air travel demand resumes, budget carriers are actively expanding overseas.

T’way Air is using wide-body Airbus SE A330-300 planes to become the first Korean low-cost carrier to fly between Incheon and Sydney. It also launched services to Singapore.

Jeju Air has sharply increased flights to Japan and added new cargo services.

However, budget carriers are still a long way from turning around their fortunes after posting huge losses since the pandemic. Jeju Air, Jin Air, Air Busan, and T’way Air all reported operating losses for three quarters this year. T’way Air’s debt-to-equity ratio reached 2,956.6 percent at the end of September.