South Korean budget airlines learn to get creative to stay aloft

Although South Korea's airline industry is staging a measurable comeback in passenger traffic, the recovery has failed to benefit the country's low-cost carriers, forcing them to seek other revenue streams to survive. In this third year into the pandemic, many South Koreans have spent the summer travel season flying overseas. Passengers on international flights in July multiplied 6.3 times from a year earlier to 1.84m, according to government data. Traffic for international flights is now at 30% of pre-COVID levels, and the passenger count for August has apparently gained further. This trend has been a boon for flag carrier Korean Air as well as the other full-service carrier, Asiana Airlines. Both airlines service mid- to long-haul flights to destinations mainly in Europe, the Americas and Southeast Asia, leaving budget carriers that offer shorter international flights in the cold. Because of South Korea's relatively small area, LCCs chiefly depend on international flights. Prior to the pandemic, these routes mainly served Japan and China -- two popular tourist destinations. Those countries each accounted for 20% of 2019 sales at Jeju Air, the South's largest budget carrier. In the advent of the coronavirus, both Japan and China imposed strict border restrictions, depressing earnings at South Korean LCCs. There are no signs that the finances will recover if the status quo holds. As an alternative, the budget airlines are scrambling to enter new business areas or establish additional routes.<br/>