Korean Air is at a loss over the government's agreement with the United Arab Emirates to allow each of their air carriers to increase flights connecting the two countries to 21 per week from 15, according to industry officials, Sunday. Before the two governments agreed last Friday, Emirates had offered seven flights per week between Incheon and Dubai with the 517-seat Airbus A380. Etihad Airways had provided seven flights per week between Incheon and Abu Dhabi with the 327-seat Boeing 787 Dreamliner. As the only Korean air carrier offering flights between Korea and the UAE, Korean Air offered seven flights per week between Incheon and Dubai with the 218-seat Airbus A330. Korean Air and other Korean carriers were able to provide eight additional flights per week between Korea and the UAE. But they did not do so because of low demand caused largely by the lower prices of the Middle Eastern country’s airlines. Based on support from the oil-rich UAE government, Emirates and Etihad have sold flight tickets from Korea to Europe via Dubai or Abu Dhabi for about 30% less than the prices of direct flights to Europe sold by Korean firms. As a result, the passenger load factor of Korean Air’s flights between Incheon and Dubai stood at 86% in August, while that of Emirates’ flights between Incheon and Dubai reached 96%. Etihad’s flights between Incheon and Abu Dhabi also showed a load factor of 95%. Industry officials expect that the latest agreement between the two governments will benefit Emirates and Etihad while incurring an additional 130b won ($100m) loss for Korea’s aviation industry every year and eliminating 1,900 jobs here. As the UAE airlines increase flights between Korea and the UAE, more Korean passengers are expected to choose the less expensive UAE flights for travel to Europe, instead of more costly Korean options, according to industry officials.<br/>