China routes emerge as key revenue source for struggling Korean LCCs

Emerging as a crucial revenue stream, China is proving to be a vital lifeline for Korea's faltering low-cost carriers (LCCs). The burgeoning passenger demand and profitable business traffic from China are proving to be a welcome respite for the struggling airlines as growth in other short-haul markets dwindles. In August, 2.13 million passengers traversed the Korean-Chinese skies, breaking the previous monthly record of approximately 2.07 million set in August 2016.

This surge was 27.5 percent higher than August 2020 and 9.7 percent more than July 2021, as indicated by data from the Ministry of Land, Infrastructure and Transport. The turnaround is being attributed to the access Korean airlines are gaining to some of the most commercially promising China routes. The government has recently allocated additional traffic rights to major LCCs, granting them more slots on key routes such as Seoul to Beijing, Shanghai, Guangzhou, Dalian, and other Chinese cities.

Jeju Air and Eastar Jet have both been allocated seven weekly flights on the Incheon-Beijing route, while Parata Air and Air Premia have also secured additional slots.