"Choosing Japan and China Over Pricey Long-Haul Trips"... Short-Haul International Travel Share Exceeds 55%

14.38 Million Short-Haul International Travelers in Q1
Rising Fuel Surcharges Drive Demand for Shorter Routes

As the burden of high oil prices drives up airfare, demand for overseas travel is increasingly concentrated on short-haul routes to nearby destinations such as Japan and China. Most of the growth in international passenger numbers in the first quarter of this year came from short-haul routes. With an increase in fuel surcharges scheduled for next month, this trend is expected to become even more pronounced.

Travelers at the airport are lining up to check in their luggage. Photo by The Asia Business Daily DB

According to the Korea Air Transport Information System on April 26, the number of passengers on short-haul international routes in the first quarter of this year reached 14,384,773, a 22.4% increase from 11,750,308 during the same period last year. This represents an increase of 2,634,465 passengers in just one year.

During the same period, total international passenger numbers rose from 23,281,762 to 26,052,983, an increase of about 2.77 million. Of this, the increase on short-haul routes accounted for approximately 2.63 million, essentially driving the overall growth. In contrast, the increase in long-haul passengers was limited to around 140,000.

As a result, the share of short-haul routes within total international passenger traffic rose from 50.5% last year to 55.2% this year.

Demand Concentrated on Japan and China Routes

A notice for flights to Tokyo Narita, Japan, is displayed at the check-in counter in the departure hall of Terminal 2 at Incheon International Airport. / The Asia Business Daily DB

Short-haul routes also showed strong performance in the financial results of individual airlines. According to Korean Air’s first-quarter investor relations (IR) materials this year, passenger revenue on Japanese routes increased by 12% year-on-year, while Chinese routes saw a 19% rise.

Asiana Airlines also saw load factors on Japanese and Chinese routes rise by 9 percentage points and 12 percentage points, respectively, compared to the previous year.

Low-cost carriers (LCCs) likewise experienced significant increases in Japanese route passengers. During the first quarter, Jeju Air’s Japanese routes carried 1,234,000 passengers, up by more than 300,000 from 915,900 in the same period last year. Jin Air saw an increase from 960,581 to 1,103,763, while T’way Air rose from 739,000 to 1,103,000 passengers.

Rising Fuel Surcharges Widen Long-Haul Burden

Industry insiders believe that if high oil prices persist due to ongoing instability in the Middle East, such as the recent Iran war, the preference for short-haul travel may become even stronger. Since fuel surcharges are imposed according to route distance, the cost burden for long-haul flights becomes significantly greater.

The average price of Singapore jet fuel (MOPS), which serves as the basis for the May fuel surcharge, was 511.21 cents per gallon from March 16 to April 15 this year. This corresponds to the highest, 33rd tier out of a total of 33 levels. This is the first time the 33rd tier has been applied.

Accordingly, Korean Air will raise its international fuel surcharge next month to a minimum of 75,000 won and a maximum of 564,000 won per one-way ticket. This is a sharp increase from this month's minimum of 42,000 won and maximum of 303,000 won.

Airlines are responding to this trend by focusing on demand for short-haul routes to destinations such as Japan and China. Industry experts expect that as the burden of increased fuel surcharges is fully reflected, the trend of travelers choosing closer destinations over long-haul trips will become even more pronounced.

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