Low-cost carriers in South Korea continued to suffer losses due to unfavorable internal and external factors such as the Japan boycott movement and the crisis in Hong Kong.
Air Busan posted 19.5 billion won in operating losses in the third quarter on sales of 159.8 billion won and in the second quarter, it posted its first loss in 9 years. Jeju Air and T’way Airlines also suffered losses.
Even during the third quarter, which is peak season, the airlines failed to turnaround due to the boycott against Japan’s economic retaliation and the weakening of the Korean won.
The aftermath of the boycott is expected to continue for some time, and many predict that demand for international flights will further decrease from the global economic slowdown and the Hong Kong crisis.