"Travel Is Out of the Question These Days" as 900 Flights Are Grounded... "No Bonuses, Please Take Unpaid Leave"

Low-Cost Carriers Hit Hard by Soaring Oil Prices

Flight Cuts and Unpaid Leave Implemented

Jet Fuel Prices Surge 150% in Two Months of War

Reductions Focused on Mid- to Long-Haul Routes

Low-cost carriers (LCCs), which have been hit hard by the surge in oil prices caused by the Middle East war, are tightening their belts.

According to Yonhap News Agency and the airline industry on May 10, LCCs are devising various measures to cut costs following the sharp rise in jet fuel prices due to the Middle East conflict. Domestic airlines have already reduced the number of round-trip flights by about 900. As some airlines have yet to finalize their flight schedules for June, the scale of flight reductions is expected to increase.

Jeju Air, the leading domestic LCC, cut 187 round-trip international flights—equivalent to 4% of its total international services—over May and June. From May 8 to June 30, flights departing from Incheon to Phu Quoc, Da Nang, Bangkok, and Singapore were each reduced from seven times a week to three or four times a week. Starting May 12, service to Hanoi will be reduced from seven to four flights per week. Since April 29, flights to Vientiane have been suspended for two months.

Jin Air has reduced 176 round-trip flights through the end of May. Last month, the airline cut 45 flights on eight routes, including Guam, and in May, it will reduce 131 flights across 14 routes, including Phu Quoc. As the June flight schedule has yet to be finalized, further reductions are expected.

Air Busan has cut 212 round-trip flights. The airline's scale of reductions is increasing each month. Next month, Air Busan will decrease flights on eight routes: from Busan to Da Nang, Bangkok, Vientiane, Guam, and Cebu, and from Incheon to Chiang Mai and Hong Kong.

Eastar Jet has also reduced 150 round-trip flights, mainly on mid-haul routes such as Phu Quoc, while Air Premia has cut 73 round-trip flights. Air Premia reduced 31 flights in April and May and has confirmed an additional 42 reductions from June to August. T’way Air has also cut 35 round-trip flights, and this number is expected to rise. Most reductions focus on Southeast Asian routes, as fuel surcharges are higher for mid- to long-haul flights, weakening travel demand. Airlines reported increased costs when additional refueling is required at local destinations.

Major airlines are also facing challenges. Asiana Airlines has suspended 27 round-trip flights on six routes—including Phnom Penh and Istanbul—through July as a result of the conflict. Korean Air has not yet reduced its flight schedule but is said to be closely monitoring the situation under an emergency management system.

Some airlines have resorted to restructuring or unpaid leave. On May 8, Jeju Air decided to implement one month of unpaid leave for volunteer cabin crew members in June. The company explained, "We had no choice but to implement unpaid leave for cabin crew as we reduced international services." Earlier, T’way Air also accepted unpaid leave applications from volunteer cabin crew for May and June. Aero K has introduced unpaid leave as well, while Jin Air postponed safety incentive payments to employees.

LCCs are more vulnerable to surging oil prices due to their weaker financial positions compared to major airlines. T’way Air has already posted losses for two consecutive years, with its debt ratio exceeding 3,400% as of the end of last year. Air Premia’s capital impairment ratio reached 132% at the end of last year, putting it in a state of complete capital erosion. If Air Premia fails to resolve this, its air transport business license could be revoked in the worst-case scenario.

Overseas, U.S.-based Spirit Airlines recently ceased operations after 34 years in business due to worsening financial difficulties.

Meanwhile, jet fuel prices have soared by about 2.5 times since the Middle East war began.

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