January Incheon Airport Performance... "Both Passenger and Cargo Plummet"

[Asia Economy Reporter Yoo Hyun-seok] Last month, both passenger and cargo traffic at Incheon Airport slowed down. Passenger traffic continues to be affected by the aftermath of COVID-19, while cargo appears to have been influenced by the off-season period.

According to the aviation industry on the 20th, international passenger transport at Incheon Airport last month was 357,000, a 69.4% increase compared to the same period last year. However, it decreased by 14.5% compared to December of last year.

Park Seong-bong, a researcher at Hana Financial Investment, said, "The fourth quarter of last year seemed to be gradually recovering, but it decreased in January due to the spread of Omicron."

The sluggishness is expected to continue for some time. Choi Gyo-woon, a researcher at Hana Financial Investment, forecasted, "In February, mandatory self-quarantine for inbound travelers remains, so the recovery of overseas travel demand will be limited."

However, passenger transport is expected to improve going forward. Researcher Park explained, "The Korean government has mentioned the possibility of managing COVID-19 as a 'seasonal flu,' and international passenger demand is expected to gradually recover from the point when quarantine for inbound travelers is eased."

Cargo also declined. Last month, cargo transport recorded 269,000 tons, a 3.1% increase compared to the same period last year, but a 6.8% decrease compared to December of last year.

[Image source=Yonhap News]

The decline in cargo is interpreted as being influenced by the off-season. Jung Yeon-seung, a researcher at NH Investment & Securities, said, "Due to the off-season for air cargo and the base effect, the volume of goods is expected to remain in a contraction phase until February." He added, "Although domestic air cargo freight rates remain at a high level, the cargo sector is expected to gradually experience a peak-out as the growth rate of cargo volume is decreasing."

However, there is also a view that it is difficult to see this as a structural decline in cargo demand. Researcher Park Seong-bong emphasized, "This is due to the end of the year-end peak season effect, and it is difficult to judge that cargo demand has structurally shifted to a downward trend. With global port congestion and strong container freight rates continuing, the favorable demand for air cargo is expected to be maintained for some time."

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