This summer, customers traveling to the United States on Korean Air in economy class will have to pay more than usual for a one-way ticket. That is because Korean Air has decided to sell only the most expensive fare class to one-way economy passengers. Korean Air says the move is intended to improve booking convenience for round-trip travelers, but the airline industry also sees it as a step to strengthen profitability.
According to the airline industry on the 13th, Korean Air recently notified travel agencies and online travel agencies (OTA) of a "use restriction for flights from Korea to U.S. cities" stating that from July 1 to Aug. 31, for routes departing Korea and crossing the Pacific to the United States, sales of economy standard seats in the S, H, K and L fare classes will be prohibited when purchased as one-way only.
Korean Air's economy standard seats correspond to regular economy. Korean Air sells economy class divided into Flex, Standard and Saver. Saver seats (L, U, Q, T), which are promotional fares, are cheaper but earn only partial mileage. They are mainly sold in off-peak seasons. Flex seats (Y, B, M) allow upgrades and some free itinerary changes, but are expensive. Standard sits between Saver and Flex.
Under Korean Air's restriction, one-way ticket customers will have no choice but to use Flex seats, even if economy standard seats remain available, unlike round-trip customers. Even when purchasing economy Flex seats, the price is higher than for round-trip ticketed passengers. In the end, one-way customers could pay nearly double the fare compared with round-trip customers.
For example, as of this date, if you book a round trip to New York on July 1, the economy standard outbound seat is 1 million won, and economy Flex is 1.9 million won. If you try to book this as a one-way, economy standard seats cannot be selected, and the economy Flex fare also rises to 2.07 million won. Given that the price of an economy round-trip ticket departing for New York on the same day and returning a week later is 1.96 million won, the one-way ticket is more expensive than the round-trip ticket.
For flights to Los Angeles during the same period, if you book a round trip, the outbound can be purchased at 850,000 won for economy standard and 1.58 million won for economy Flex, but if you book it one-way, you must pay 1.72 million won for an economy Flex seat. The price of a round-trip ticket departing for Los Angeles on the same day and returning a week later is 1.67 million won.
Korean Air said the measure is intended to resolve imbalances in inbound and outbound demand during peak season and provide customers with smooth flight supply. In peak season, there is also greater demand for one-way tickets from students and others. If many one-way seats are sold, customers with round-trip demand for travel and other purposes may have difficulty ticketing normally. To prevent this, the airline said it adjusted booking classes for one-way tickets.
By contrast, Asiana Airlines allows one-way U.S.-bound tickets departing domestically on July 1 to be purchased in economy standard. Asiana Airlines operates economy class in two types: Standard and Flex.
On that date, the economy standard price for an Incheon-to-New York outbound ticket is 980,000 won for a round-trip issuance basis and 1.26 million won for a one-way issuance basis. For Los Angeles, it is 930,000 won on a round-trip basis and 1.08 million won on a one-way basis.
In the airline industry, there is a view that Korean Air preemptively restricted one-way bookings to maximize profitability during peak season. An airline industry official said, "For U.S. routes, July–August is peak season with various demand layers on top of basic business travel, including summer vacation travel and students returning or departing," adding, "Korean Air likely preemptively restricted one-way ticket sales to increase profitability during this period."
A Korean Air official said, "Seat sales policies have always been operated flexibly depending on demand."