'NO Japan' Amid 'Return of Youkeo'... Last Year’s Air Passenger Numbers Hit Record High

In August last year, when the boycott of Japanese products continued due to the Japanese government's export restrictions, the check-in counters for flights to Japan at Incheon International Airport showed a quiet scene, while the counters for flights to Vietnam were crowded with travelers. / Yeongjongdo - Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Lee Chun-hee] Last year, despite the impact of the Japanese boycott movement and the anti-China protests in Hong Kong, air passenger traffic reached an all-time high due to the recovery of Chinese travelers (游客) and an increase in alternative routes. The total number of air passengers has steadily increased since surpassing 100 million for the first time in 2016.

According to the Ministry of Land, Infrastructure and Transport on the 29th, international and domestic passengers increased by 5.2% and 4.4% respectively compared to the previous year. On the other hand, air cargo recorded 4.02 million tons, down 3.8% from the previous year amid the US-China trade dispute and Japan's export restrictions.

International passengers decreased on routes affected by the Japanese boycott and the intensification of anti-China protests in Hong Kong, but thanks to route diversification and increased travel demand from both domestic and foreign travelers, the number rose 5.2% year-on-year to 90.39 million.

By region, the Japan route recorded 18.86 million passengers, down 2.49 million (-11.6%) from the previous year, returning to the level before 2017 (19.04 million). The Hong Kong route also turned downward from April after the protests began at the end of March last year, declining for nine consecutive months. Ultimately, the Hong Kong route also recorded a 10.4% decrease compared to the previous year.

However, low-cost carriers (LCCs) increased route supply to Vietnam, the Philippines, Taiwan, and other destinations as alternatives to Japan routes, and the increase in individual Chinese tourists and incentive travelers contributed to the overall growth in air passengers this year as well.

The number of passengers on China routes was 19.86 million in 2016, but due to the THAAD issue in 2017 and the resulting ban on group tours (Hallyu ban), it dropped 29.8% to 13.94 million in 2018. However, as the ban gradually eased with group tours allowed in six Chinese municipalities and provinces from August 2018, last year’s passenger count increased 14.4% year-on-year to 18.43 million.

Asian routes also showed an 11.6% increase to 36.44 million last year. In particular, Southeast Asia recorded a notable rise of 14.6% year-on-year to 26 million. Additionally, European route passengers increased by 9.4%, driving the overall upward trend.

▲ 2019 Major Regional International Passenger Traffic Trends (Provided by Ministry of Land, Infrastructure and Transport)

These changes in passenger numbers by route also affected international passenger performance at domestic airports. At Muan Airport, passengers on routes to Vietnam, Japan, Taiwan, the Philippines, Thailand, and China grew by more than 50%, doubling the international passenger count to 680,000 last year from 320,000 the previous year. Cheongju (55.9%) and Jeju (40.7%) also showed strong growth due to increases in China and Asia routes.

Conversely, due to the decline in Japan route passengers, Yangyang (-14%), Gimhae (-2.7%), and Gimpo (-0.4%) experienced slight decreases.

By airline, major domestic full-service carriers (FSCs) increased by 0.2% year-on-year, while domestic LCCs grew by 6.3%. The market share of domestic airlines was 66.9%, down 1.6 percentage points from 2018.

Domestic passengers also increased by 4.4% year-on-year, setting a new record. The reduction in Japan routes led to increased flights on the Jeju route, boosting seat supply and rising travel demand from both domestic and foreign tourists to Jeju, which were the main factors for the growth. After recording 31.6 million passengers in 2018, down 2.5% due to flight reductions, the trend reversed within a year.

Among airports, Cheongju showed remarkable growth of 17.7%, supported by the increase in Jeju route passengers. Yeosu (8.3%), Gimpo (4.3%), and Jeju (4.1%) followed, with most airports showing upward trends. Only Ulsan saw a 4.7% decrease compared to the previous year.

By airline, domestic FSCs transported 13.91 million domestic passengers, up 6.3% year-on-year, while LCCs carried 19.07 million, up 3%. The FSC’s stronger growth increased its market share to 42.2%, up 0.8 percentage points from the previous year.

▲ 2019 Air Transport Market Trends (Provided by Ministry of Land, Infrastructure and Transport)

Unlike passengers, cargo showed a downward trend. The slowdown in global trade due to the US-China trade dispute and Japan’s export restrictions significantly reduced international cargo such as IT products. Domestic cargo also declined in terms of freight.

International cargo recorded 4.02 million tons, down 3.7% year-on-year, despite a 3.7% increase in international passenger baggage, due to decreases in IT cargo such as semiconductors, wireless communication devices, and displays, as well as a 2.8% reduction in cargo flight operations.

By region, Japan experienced the largest decline. Japan’s cargo volume dropped 17.3% from 540,000 tons in 2018 to 450,000 tons last year. Except for Asia, which increased by 1.1%, cargo volumes decreased across all other regions, including the Americas (-5.5%) and Europe (-3.5%).

Domestic cargo saw a 3.1% increase in baggage but a 16% decrease in freight, resulting in a 5.3% decline year-on-year to 260,000 tons.

Kim Yi-tak, Director of Aviation Policy at the Ministry of Land, Infrastructure and Transport, said, "Despite the sluggish Japan and Hong Kong routes, air passenger traffic achieved an all-time high last year due to route diversification to China and Asia and increased travel demand from both domestic and foreign travelers." He added, "This year, we plan to actively support the sustainable growth of the aviation industry through expanding global networks via strategic air talks, pioneering new markets, and attracting new inbound tourist demand."

He also stated, "We will closely monitor the impact of recent external and internal variables such as the novel coronavirus on the aviation industry and work closely with related agencies and the industry to minimize the impact."

This content was produced with the assistance of AI translation services.