Korea Airports Corporation "Turning Profitable by May Next Year, One Year Ahead"

Net Profit of 21.1 Billion KRW Expected by End of 2024
Impact of Early Demand Recovery and Launch of New Routes
Gimpo Airport to be 'Business-Focused'
Overseas Projects Including Peru New Airport Construction and Operation Also Progressing Smoothly

Korea Airports Corporation announced on the 5th that it will advance the turnaround to profitability, initially expected in 2025, to May next year based on the early recovery of air travel demand. Yoon Hyung-jung, president of Korea Airports Corporation, said at a press conference on the afternoon of the 5th, "After four consecutive years of deficits, we expect to return to profitability by May next year." He added that a net profit of 21.1 billion KRW is expected by the end of 2024.

On the afternoon of the 5th, Yoon Hyung-jung, President of Korea Airports Corporation, explained key issues at a press briefing held at the Korea Airports Corporation headquarters.
[Photo by Korea Airports Corporation]

This result was supported by the rapidly recovering international flight demand. The number of international passengers at the seven international airports operated by the corporation nationwide (Gimpo, Gimhae, Jeju, Cheongju, Daegu, Muan, Yangyang) is predicted to reach 10 million by the end of this month. The corporation expects the total to reach about 13 million by the end of the year, recovering to 64% of the 2019 level (20.32 million). Passenger numbers and flight operations are expected to recover to 88% and 82%, respectively. Next year, the corporation predicts that international passengers will reach up to 22 million, exceeding the 2019 figures.

In particular, the launch of new routes led the demand recovery. In cooperation with the government and airlines, new routes between Gimpo and Kaohsiung, Taiwan, and between Daegu and Mongolia were secured. Cheongju Airport, which had mainly operated Chinese routes, attracted routes to Japan and Southeast Asia, boosting demand.

On the 5th, a press conference with reporters covering Korea Airports Corporation was held at the Korea Airports Corporation headquarters in Gangseo, Seoul.
[Photo by Korea Airports Corporation]

Measures to respond to the increased demand next year were also announced. Slots (the number of permitted takeoffs and landings per hour) at Daegu and Cheongju airports will be expanded, and terminals at Gimhae and Daegu airports will be enlarged. Negotiations with foreign airlines are underway to open new routes from Gimhae to the Americas and Europe to improve air travel convenience for local residents.

Additionally, the corporation revealed plans for a comprehensive overhaul of Gimpo Airport and expansion of overseas projects. After the opening of Incheon Airport in 2001, international flights at Gimpo Airport were suspended but resumed in 2003 with the launch of the Gimpo-Haneda route. Marking the 20th anniversary of this route this year, plans are underway to transform Gimpo into a "business-specialized airport." The corporation aims to strengthen connectivity along the "Veseto" (Beijing-Seoul-Tokyo) line, which connects the capitals of three countries, and to revitalize the "Sangseo" (Shanghai-Seoul-Tokyo) route. With the Osaka Expo scheduled for 2025, preparations are being made to accommodate the anticipated increase in demand. The introduction of dedicated gates, business lounges, and shared office spaces to facilitate the entry and exit of businesspeople is also under consideration.

Gimpo Airport International Terminal Departure Hall
Photo by Korea Airports Corporation

Long-term and stable revenue generation is also expected through the construction project of the new Chinchero Airport in Peru. On the 28th (local time), the Peruvian government and the corporation agreed to proceed with an approximately 34 billion KRW "operation support technical consulting project." This means that the corporation will be responsible not only for the construction of the new airport but also for operational consulting. Based on this, the corporation explained that it has established a foothold to enter the airport operation rights business. Furthermore, it plans to expand into airport operation rights projects in Latin America and Southeast Asia, including the Dominican Republic, Laos, and Indonesia.

President Yoon said, "We will accelerate the recovery of international air travel demand beyond pre-COVID levels," and added, "We will focus the corporation's capabilities on overseas market development and strive harder to improve business performance."

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