South Korean low cost carriers cut flights amid fuel crisis

Air Seoul

An industry official commented that Korean Air Group is moving toward a major structural overhaul, noting plans to integrate Jin Air, Air Busan, and Air Seoul into a larger “mega LCC” next year. “Ahead of the consolidation, concerns are rising over worsening financial performance, particularly in the context of external shocks such as geopolitical tensions and volatile fuel prices,” the official said. “Pressure on affiliated low-cost carriers to reduce expenses is clearly intensifying.”

Other measures taken by Korean Air LCC affiliates are the following: Air Seoul recently rolled out a “paperless” initiative designed to eliminate printed documents while expanding the use of remote video meetings and virtual reporting, to cut costs associated with transporting regional staff to headquarters. The carrier also instructed operational teams to increase fuel tankering practices, by loading additional fuel at airports where prices are lower. Finally, the airline is also scaling back its Incheon–Guam schedule.

Jin Air and Air Busan

Jin Air has reportedly postponed indefinitely the payment of employee safety incentive bonuses. The carrier is also exploring additional efficiency initiatives, including an internal competition to generate cost-saving ideas as it works to stabilise its financial position.

Jin Air flight program is also trimmed. The airline is reducing 45 round-trip flights across eight routes this month, including services linking Incheon with Guam and Nha Trang, as well as Busan–Cebu operations.

Air Busan is also reducing services on Busan–Da Nang, Cebu, and Guam routes.

Beyond the Korean Air Group

Elsewhere in the Korean LCC sector, Eastar Jet is reportedly introducing an annual leave designation and promotion system. The mechanism allows employers to encourage or formally assign specific periods for employees to take annual leave. The move is aimed at reducing accumulated leave liabilities and related payroll costs.

T’way Air has separately confirmed tighter budget controls across all departments. Air Premia has reportedly placed its annual promotion review process on hold for the time being, reflecting a broader effort to preserve cash. The airline has also adjusted its long-haul network, suspending 10 flights on Incheon–San Francisco and Incheon–Newark routes next month, alongside cancellations of 26 flights to Los Angeles and six flights to Honolulu scheduled between late April and late May.

Jeju Air has announced the largest reduction in frequencies of any Korean LCCs. The carrier is cancelling a total of 110 flights on routes between Incheon and Hanoi, Bangkok, and Singapore from next month through June.

Another carrier, Aero K is cutting four routes (Cheongju–Ibaraki, Tokyo-Narita, Clark, and Ulaanbaatar) between this month and June.

An aviation official noted that the structural imbalance between full-service and low-cost carriers is worsening the impact on LCCs. “For major airlines such as Korean Air and Asiana Airlines, cargo operations account for more than 25% of revenue,” the official said. “For LCCs, cargo typically represents less than 5%, meaning they are far more exposed to fluctuations in passenger demand.”

The official added that if current conditions persist, the outlook remains highly uncertain. “Should demand fail to recover by June, some low-cost carriers could face significant financial strain and potentially severe management challenges.”