South Korean Airlines Slash 900 Flights as Fuel Prices Surge

TEMPO.CO, Jakarta - South Korean low-cost carriers have cut around 900 round-trip flights and introduced unpaid leave and other emergency measures as soaring fuel prices triggered by the Middle East conflict continue to pressure the aviation industry, according to industry officials on Sunday.

The flight reductions come as jet fuel prices surged following the escalation of tensions involving the United States and Iran. Several airlines have yet to finalize their June schedules, meaning the number of canceled flights could increase further, officials said.

Jeju Air, South Korea’s largest low-cost carrier, has decided to cut 187 international round-trip flights. The reductions account for around 4 percent of its operations on routes connecting Incheon with destinations including Bangkok, Singapore, and the Vietnamese cities of Da Nang and Phu Quoc during May and June. Since late April, the airline has also suspended its Vientiane route for two months.

Meanwhile, Jin Air has cut 176 round-trip flights to destinations including Guam and Phu Quoc through the end of this month. Additional cuts are expected once the airline finalizes its June schedule.

Among full-service airlines, Asiana Airlines has reduced 27 round-trip flights across six routes, including Phnom Penh and Istanbul, through July following the outbreak of conflict in the Middle East.

Korean Air, the country’s largest airline, has not yet adjusted its flight operations but said it is closely monitoring the situation under an emergency management system.

“Travel demand for medium- and long-haul routes has weakened due to the rising burden of fuel surcharges,” an airline official said.

Another industry official noted that some Southeast Asian routes now require additional refueling stops, while higher fuel prices have sharply increased the costs of those operations.

Jet fuel prices have reportedly surged 2.5 times since the outbreak of the conflict. The average price of Singapore jet fuel, which serves as a benchmark for fuel surcharges, stood at US$214.71 per barrel between March 16 and April 15, up 150 percent compared to two months earlier.

Amid worsening business conditions, Korean Air, Asiana Airlines, Jin Air, T'way Air, and other carriers have introduced emergency management measures.

T’way Air and Jeju Air have implemented unpaid leave programs, while Jin Air has delayed safety incentive payments to employees.

Although airlines posted solid earnings in the first quarter, analysts expect many carriers to slip into losses in the second quarter as the effects of the conflict spread through rising oil prices, weakening travel demand, and a depreciating South Korean won.

Low-cost carriers are considered particularly vulnerable due to their weaker financial positions compared to major full-service airlines.

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