Airfare from Korea to Japan, SE Asia drops as LCC competition deepens

[Photo by MK DB]

As competition among low-cost carriers (LCCs) intensifies, airfares for flights from South Korea to Japan and major Southeast Asian destinations have taken a sharp downturn, raising concerns about a resurgence of the bleeding competition that had undermined the profitability of airlines before the Covid-19 pandemic.

According to sources on Monday, air ticket prices for T’way Air Co.’s Incheon to Fukuoka route plummeted to around 130,000 won ($98) for a round trip in mid-June. This comes as a stark reversal from the surge in prices, ranging from 300,000 to 400,000 won, during the May holidays when air travel demand was high.

The airfare for JejuAir Co.’s June reservations for the Fukuoka route more than halved to the 220,000 won range from the 500,000 won range at the beginning of May. Tickets for flights departing in mid-July, the biggest peak season, are mostly selling in the 300,000 won range.

Last month, Air Seoul Co. even released air tickets priced at zero won. Travelers only need to pay fuel surcharges and airport facility fees.

Low-cost airfares are not limited to flights to Japan but are also prevalent for destinations in Vietnam, Taiwan, and Taipei. Round-trip tickets for these Southeast Asian routes are priced around 60,000 to 100,000 won. Although LCCs emphasize these offers as special promotions, market observers say that ticket prices are returning to normal levels in the past.

“This can be seen as a stabilization of ticket prices after a spike in demand. We expect ticket prices to resume their upward trend after mid-July,” said Cho Il-sang, the PR team head of HanaTour Co.