COVID-19 Prolongation... Korean Air Extends Rotational Leave by 2 Months

[Asia Economy Reporter Yu Je-hoon] The prolonged COVID-19 pandemic is extending both paid and unpaid leaves in the aviation industry.

According to the industry on the 14th, Korean Air decided to extend the paid rotational leave for employees, which had been ongoing for six months since April 15, by two months. As a result, Korean Air's rotational leave has been extended until December 15.

Earlier, as international flights were suspended for a prolonged period due to COVID-19, Korean Air implemented rotational leave for 70% of all employees. This was due to international passenger numbers plummeting by 97-98%.

This situation is ongoing. According to Incheon International Airport Corporation, international passengers last month decreased by about 96% compared to the same period last year. An industry official said, "Considering the market situation, this seems like a natural progression."

Low-cost carriers (LCCs) are not exempt from this situation. Unlike Korean Air, which applied for government employment retention subsidies somewhat late, LCCs will see their maximum 240-day support periods sequentially end from mid to late this month through next month.

Accordingly, LCCs such as Jeju Air, Jin Air, T'way Air, and Air Busan plan to implement unpaid leave sequentially until the end of this year. This is a choice to minimize fixed costs until employment retention subsidies resume next year.

The problem is that it remains difficult to predict when the industry will improve. The International Air Transport Association (IATA) expects air passenger demand to recover to last year's levels only by 2024. This means that airlines' leaves and shutdowns may be prolonged.

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