New Routes and Expansion... LCCs Preparing for Winter

Concerns Over Declining Travel Demand Amid Economic Recession
High Exchange Rates Increase Costs... Rushing to Attract Customers

Low-cost carriers (LCCs) are stepping up to defend their performance ahead of the winter season. They are aggressively promoting special fare events and launching new routes to attract year-end travel demand.

According to the industry on the 3rd, T'way Air is conducting a large-scale discount event targeting 35 domestic and international routes. They have introduced special fare tickets covering various regions, including recently launched European routes as well as Japan and Southeast Asia. The starting price for long-haul routes such as Frankfurt, Germany, Paris, France, and Rome, Italy is set in the 200,000 KRW range, targeting European travel demand at prices comparable to peak-season short-haul fares.

Discounts of up to 15% are also being offered on routes to Japan, Southeast Asia, and Greater China. Following losses recorded in the third quarter due to the launch of European routes and growing concerns over a slowdown in year-end demand amid the economic downturn, they have lowered prices to secure customers for the winter season.

Air Premia has also begun preparations for the winter season. They will launch a new Incheon?Hong Kong route in January next year and increase the Bangkok, Thailand route frequency from five to seven times a week. Since their long-haul routes mainly focus on Los Angeles (LA), New York, and San Francisco in the U.S., it is interpreted that they are pursuing portfolio stabilization as it is difficult to defend performance during the winter low season. Jin Air and Eastar Jet will also operate exclusive routes to Kitakyushu and Tokushima in Japan, respectively.

The background behind the busy movements of LCCs includes concerns over the economic downturn and high exchange rates. As the KRW-USD exchange rate continues to soar, fixed costs such as fuel and maintenance expenses are not decreasing easily, and travel demand remains stagnant. Additionally, there is an interpretation that these moves are in preparation for the integration of affiliated LCC subsidiaries following the merger of Korean Air and Asiana Airlines.

An aviation industry official said, "There is a concern that travel demand itself may shrink due to the economic downturn, and even the currently most popular Japan travel demand may falter as the KRW-JPY exchange rate rises to the 930 KRW level," adding, "From the LCC perspective, there is a growing anxiety that they must attract customers in advance."

On the 13th, one day before the Chuseok holiday, Incheon International Airport Terminal 1 departure hall is bustling with crowds heading overseas for the holiday period. Photo by Jo Yongjun jun21@

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