As international oil prices surge due to the prolonged war between the United States and Iran, low-cost carriers (LCCs), burdened by higher jet fuel costs, are cutting flight routes one after another.
According to the airline industry on the 26th, Air Premia decided to suspend a total of 10 flights in May on routes from Incheon to San Francisco and New York (Newark) in the United States.
On the Incheon–San Francisco route operating from May 2 to 24, eight flights will not operate, and on the Incheon–New York route operating from May 6 to 7, two flights will not operate. Passengers who booked the affected flights can change their itinerary once within seven days for free or receive a full refund of the fare without fees.
Air Premia decided to reduce flights because recent oil price increases and a strong dollar made it difficult to maintain profitability. According to the International Air Transport Association (IATA), the average jet fuel price in Asia and Oceania for the 14th–20th rose 16.6% from the previous week to $204.95 per barrel. Compared with the previous month's average, that is up 129.8%, and compared with last year's average, it soared 136.1%.
Air Premia had earlier released a plan to suspend a total of 26 flights on the Incheon–Los Angeles (LA) route and six flights on the Incheon–Honolulu route from the 20th of next month to May 31.
Eastar Jet Co. plans to suspend operations of about 50 flights on the Incheon–Phu Quoc, Vietnam route from May 5 to 31.
AIR BUSAN and Aero K also decided to reduce some international flights starting next month. Larger LCCs such as Jeju Air, T'way Air, and Jin Air are also reportedly reviewing whether to suspend some routes in Southeast Asia.
An airline industry official said, "LCCs have fewer means to hedge risk than major carriers such as Korean Air Lines and Asiana Airlines, and their cargo transport revenue is lower, so they inevitably face greater difficulties amid a strong dollar and high oil prices."