Incheon Airport Reports Strong Q1 Results Despite War... Boosts MRO Competitiveness

Despite the dual challenges of a high exchange rate and soaring oil prices, Incheon International Airport Corporation continued to see growth in both passenger numbers and financial performance in the first quarter.

Panoramic view of Incheon International Airport. Incheon International Airport Corporation

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On April 21, the corporation held a media briefing at the Incheon Airport press room and announced that the number of passengers in the first quarter reached 19.78 million, a 7% increase compared to the same period last year.

The main drivers identified were the sustained preference for travel to Japan and the extension of visa exemptions for group tourists from China, which led to an increase in Chinese visitors to Korea. Although the number of passengers on Southeast Asian and Middle Eastern routes decreased by 4.7% and 16%, respectively, due to concerns over local security and reduced operations, the increase in passenger numbers on Japanese and Chinese routes offset these declines, resulting in overall passenger growth.

The corporation also provided analysis regarding fluctuations in passenger demand due to the impact of the war between the United States and Iran. While there were no short-term effects from the conflict, from the second quarter onward, the rising oil prices and flight cancellations are expected to cause a slight slowdown in the upward trend of passenger demand. For 2026, passenger demand is projected to reach 75.07 million, about a 2% increase from last year's 73.56 million, indicating moderate growth.

However, the company explained that if the conflict between the United States and Iran becomes prolonged, the resulting increase in fuel surcharges and the overall economic downturn could further dampen the growth of passenger demand.

In the first quarter of this year, the corporation posted revenue of 706.8 billion won, marking a 5.4% increase from the same period last year. Operating profit was 230.2 billion won, a 1.9% increase over the same period. Net income was 145.3 billion won, representing a 25% decrease. While the company has maintained stable profitability since the COVID-19 period and revenue continues to rise, increased outsourced service costs and depreciation have affected both operating profit and net income.

Aerial view of the Incheon International Airport MRO Complex. Incheon International Airport Corporation

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The Advanced Aerocomplex Development Project is also progressing in stages. This is a large-scale project to attract conversion and maintenance facilities on a site of about 2.35 million square meters within Incheon Airport. By 2032, the company plans to attract specialized conversion and maintenance facilities in earnest, creating synergies through the clustering of such facilities. In the long term, the plan is to connect with the airport economic zone and build an industrial ecosystem in the surrounding area. Once the project is stabilized, it is expected that overseas maintenance volumes will be relocated to Korea, creating more than 5,000 jobs and generating an average annual production inducement effect of approximately 1 trillion won over the next 10 years.

Starting at the end of this month, the first aircraft will enter the Advanced Aerocomplex’s conversion facility and undergo the process of being converted from a passenger plane into a freighter. The aircraft to be received is a Boeing B777, which will arrive around the end of the month and undergo a conversion process lasting about 180 days, with delivery expected around October this year. While the conversion of a passenger plane to a cargo plane typically takes up to 120 days, in this case, an additional 60 days is anticipated to ensure the proficiency of technical staff and the establishment of work systems. The current conversion facility is a 2.5-bay scale, capable of handling simultaneous work on two wide-body aircraft and one narrow-body aircraft. In the future, it will be able to perform up to six conversions per year. A wide-body aircraft refers to a fuselage with two aisle rows, while a narrow-body aircraft has a fuselage with a single aisle row.

The corporation also emphasized its ongoing efforts to improve regulations in order to vitalize the Advanced Aerocomplex. Through close cooperation with Incheon Customs and the Korea Customs Service, the complex has been designated as a Free Trade Zone (FTZ), making it easier to import and export parts needed for conversion and maintenance. Additionally, the import procedures for aircraft parts have been streamlined, reducing import clearance times by about 70% and enabling immediate response in emergency situations.

Bumho Kim, acting president, stated, "The continued growth despite uncertain external conditions has been possible thanks to the support and interest of the public. Going forward, Incheon Airport will not only export K-Airport operational expertise worldwide, but will also complete the Advanced Aerocomplex without setbacks, strengthening our competitiveness in the global maintenance, repair and operations (MRO) market and leading the advancement of Korea's aviation industry."

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