South Korea’s airline industry is under financial pressure because of high oil prices and unfavorable exchange rates. Airlines are changing their strategies to survive.

Korean Air has raised funds by issuing Samurai bonds and is also planning to merge its low-cost carriers (LCCs). Business survival has become more important than price competition.

Korean Air plans to use the funds to buy new aircraft and support future investment.

It also plans to merge Jin Air, Air Busan, and Air Seoul into a single low-cost carrier. The goal is to improve efficiency and strengthen competitiveness.

In the past, low-cost carriers mainly competed by offering lower ticket prices.

However, rising fuel and operating costs have made this strategy less effective. Airlines are now focusing on reducing operating costs instead of further lowering ticket prices. Some low-cost carriers are also improving their services and providing more convenient flight schedules. They are trying to attract passengers in ways other than simply offering lower ticket prices.

Korean Air’s sales increased by 25.9% in the second quarter. However, its operating profit fell by 34.4% from a year earlier. Higher fuel costs caused the decline in operating profit.

High oil prices are changing the airline industry. In the future, airlines will need financial strength and efficient management to stay competitive.

한예현 강남포스트 학생기자  webmaster@ignnews.kr

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