LCCs Increasing Domestic Flights Ahead of Summer Vacation Season

Major Airlines Embrace 'Downsizing'

[Asia Economy Reporter Yu Je-hoon] Ahead of the summer vacation season, the aviation industry, centered on low-cost carriers (LCCs), is actively launching new domestic routes and increasing flight frequencies. This is based on the judgment that travelers who lost overseas vacation destinations due to the COVID-19 pandemic are likely to choose major domestic travel spots as an alternative. However, some in the industry are concerned that with supply concentrated on domestic routes where demand is limited, a 'bloody competition' may be inevitable.

According to the industry on the 21st, Jin Air has been operating irregular flights on the Gimpo~Yeosu and Yeosu~Jeju routes for about a month since the 19th. With its sister company Korean Air having suspended operations on the Yeosu route since March, Jin Air has effectively taken over the baton.

Yeosu is a region where tourism demand has surged since hosting the Yeosu Expo in 2012. With this new service, the number of airlines serving Yeosu Airport has increased to four: Asiana Airlines, Jeju Air, Jin Air, and Hi Air (a small-scale air transport operator). It is also reported that another LCC is considering launching service to Yeosu.

An industry official said, "For major airlines, domestic routes except for some like Jeju are routes where profits are hard to expect, whereas for LCCs, which have suspended international flights, these routes are the only escape." He added, "Going forward, major airlines will suspend domestic flights, while LCCs will increase new routes and flight frequencies."

The concentration of LCCs’ new routes is not limited to Yeosu. Yangyang Airport, once called a 'ghost airport,' has recently seen route expansions by T’way Air (Yangyang~Busan, Gwangju), Jeju Air (Yangyang~Busan), and Fly Gangwon (Yangyang~Gimpo). This is an expansion of supply aimed at summer vacationers on the East Coast.

In addition, LCCs are continuously exploring route expansions centered on regional small airports such as Cheongju, Gwangju, Gunsan, and Ulsan. For example, four airlines?Asiana Airlines, Jeju Air, T’way Air, and Jin Air?operate on the Gimpo~Gwangju route.

However, as each company is expanding supply and engaging in price competition due to the COVID-19 situation, concerns about bloody competition are growing. An LCC official said, "Although the number of routes has increased and load factors are decent, fare levels are at rock bottom, so it is not profitable." He added, "The reason each company schedules irregular flights before regular operations is because they judge it could easily become a 'one-season business.'"

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