"Why Are Air Tickets Unavailable?" 15 Million Travelers Expected... Crowded Skies Between Korea and Japan

Korean Air has projected that the number of travelers between South Korea and Japan will reach 15 million next year, as demand for travel between the two countries continues to grow steadily. The airline also hinted at the possibility of expanding its routes in response to rising demand.

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Choi Jeongho, Executive Vice President and Chief Commercial Officer at Korean Air, stated in an interview with Nikkei, published on April 15, that the number of travelers between South Korea and Japan, which was about 13 million last year, is expected to increase to 15 million by 2027. He predicted, "This year, the number of travelers from South Korea to Japan could approach 11 million, while the number coming from Japan to South Korea is expected to exceed 4 million."

Choi explained, "Relations between South Korea and Japan are improving at the governmental level, and tourism demand is no longer just a temporary boom but is becoming a part of everyday life, similar to domestic travel." He added, "There is also demand related to lifestyle needs such as international marriage, studying abroad, and visiting family."

Choi also expressed a positive outlook regarding the expansion of routes between South Korea and Japan in light of the merger between Korean Air and Asiana Airlines. He stated, "We basically plan to maintain existing routes, but depending on circumstances, we would like to increase the number of routes or flights," indicating the company's intention to expand operations.

Korean Air's revenue for the first quarter of this year was 4.5151 trillion won, up 14% from the same period last year, while operating profit rose more than 47% to 516.9 billion won. The improvement in performance was attributed to factors such as increased travel demand during the Lunar New Year holiday in February and a surge in demand ahead of higher fuel surcharges due to rising oil prices. Demand for Japanese routes also remained strong, resulting in a 12% year-on-year increase in revenue for the first quarter.

The fact that the full impact of soaring fuel costs has not yet been reflected also contributed to improved performance. Korean Air's fuel expenses for the first quarter of this year were 1.0795 trillion won, a decrease of 0.1% compared to the same period last year, reportedly thanks to efforts to reduce fuel consumption through operational optimization, such as introducing the latest aircraft.

However, Nikkei pointed out that Korean Air's business outlook remains uncertain due to factors such as surging oil prices driven by tensions in the Middle East and the cost burden arising from the integration process with Asiana Airlines.

In fact, Korean Air switched to an emergency management system starting this month. With the impact of high oil prices and a strong won expected to intensify in the second quarter, the company has begun implementing cost reductions and scaling back investments in anticipation of an inevitable decline in performance.

Nevertheless, there are expectations that South Korea-Japan routes will maintain a relatively stable trend. Choi commented, "For airlines, fuel prices are the biggest cost factor. However, because the major routes between South Korea and Japan are short in distance, the burden of fuel surcharges is relatively light. The impact is less than that of long-haul routes, so these routes may become more advantageous compared to other regions."

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