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Chinese media outlet Global Times reported on the 28th that "South Korean airlines are positioning China as a 'pillar of revenue'." The photo shows Gimpo International Airport.
Chinese media outlet Global Times reported on the 28th that "South Korean airlines are positioning China as a 'pillar of revenue'."
According to the article, South Korea's Yonhap News reported on the 26th, citing data from the South Korean Ministry of Land, Infrastructure and Transport, that the number of international passengers in South Korea from January to August this year showed a 9.8% increase compared to the same period last year. Of these, South Korea-China routes saw a 23% increase, reaching a cumulative total of 13,615,000 passengers, and it is believed that China's visa exemption measures for South Korean tourists boosted demand for routes to China.
Furthermore, according to The Korea Times, the number of passengers traveling between China and South Korea in August reached a cumulative total of 2.13 million, marking a new monthly record.
On the other hand, the number of passengers on Vietnam routes from January to August decreased by 5.1% compared to the same period last year. Philippine routes saw a 13.7% decrease, and Thailand routes also decreased by 13%. According to a source in the South Korean aviation industry, "Due to rising fuel surcharges, some passengers have changed their travel destinations from long-haul Southeast Asian countries to China or Japan. Airlines are also adjusting their operations accordingly."
According to the article, South Korean low-cost carriers are currently looking to rebuild their performance. Jeju Air, Jin Air, and Trinity Air (renamed from T'way Air) all posted operating losses in the second quarter of this year. The Korea Times reported that "rising fuel costs and unfavorable exchange rates squeezed profits, and competition on routes to Japan and Southeast Asia also intensified."
Furthermore, South Korea's Maeil Business Newspaper has previously reported that "China routes have relatively lighter fuel costs, and the average customer spending also surpasses that of highly competitive routes to Japan." It also conveyed that "Beijing and Shanghai are not only attracting tourists but also becoming important cities for South Korean companies' business expansion."
According to the article, The Korea Times quoted an industry source as saying, "For low-cost carriers looking to reduce their reliance on revenue from routes to major tourist destinations in Japan and Southeast Asia and seeking to restore profitability, China routes could become an increasingly important 'pillar of revenue'." However, it also pointed out that "the challenge currently faced by South Korean low-cost carriers is to turn the surging demand into sustainable revenue," and further argued that "competition may arise in the future" as Chinese airlines are also expanding their operations in South Korea.