The Korea Times
Major airlines in Korea are scaling back international routes, as surging oil prices and the strengthening dollar erode their profitability at a rapid pace. The move is evident particularly from low-cost carriers (LCCs) — most of which have to cushion additional earnings falls from mounting external uncertainties. Most LCCs reported operating losses last year on the prolonged depreciation of the Korean won against the dollar. Their earnings outlook this year also remains dismal on the unexpected fuel cost hike amid the abrupt outbreak of armed conflict in the Middle East. They are preemptively reducing their flight operations on concerns over weakening passenger demand due to the rising ticket prices. Jin Air will suspend a total of 45 round-trip flights on eight routes from April 4 to April 30. The affected routes include Incheon-Guam, Incheon-Nha Trang and Busan-Cebu. Air Premia, which focuses on mid- to long-haul routes, will also cut back operations for a similar reason. Starting from April, the airline will reduce 26 flights on its Incheon-Los Angeles route and six on its Incheon-H
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