SEOUL: South Korea’s low-cost airlines have cut about 900 round-trip flights and rolled out unpaid leave and other cost controls as a surge in jet fuel prices squeezes margins and weakens demand on some international routes. The reductions, concentrated in May and June schedules, mark one of the clearest signs yet of how higher fuel costs are reshaping operations in one of Asia’s most competitive short-haul aviation markets. The cutbacks have also spread beyond budget carriers to parts of the broader airline sector.
Jeju Air, the country’s largest budget airline, cut 187 round-trip international flights in May and June, equal to about 4% of its total operations, on routes from Incheon to Bangkok, Singapore, Da Nang and Phu Quoc. It also suspended its Vientiane service for two months from late April. Jin Air cut 176 round-trip flights through the end of May on routes including Guam and Phu Quoc, underscoring the pressure on airlines that rely heavily on regional leisure traffic.
The pressure has also reached larger carriers. Asiana Airlines reduced 27 round-trip flights on six routes through July, including services to Phnom Penh and Istanbul. Korean Air has not changed its flight schedule, but it has said it is monitoring the market under an emergency management system introduced as fuel costs climbed sharply this spring. The latest moves point to a wider effort by South Korean airlines to protect cash flow as fares, surcharges and operating costs rise together.
Fuel costs reshape schedules
Jet fuel prices have risen 2.5 times since the outbreak of conflict in the Middle East, according to industry figures. The Singapore jet fuel benchmark used to calculate fuel surcharges averaged $214.71 a barrel from March 16 to April 15, up 150% from two months earlier. That increase has fed directly into airline cost structures, with carriers facing higher spending not only on fuel itself but also on route planning, aircraft utilization and schedule management across regional networks.
Several airlines have paired flight cuts with internal austerity steps. T’way Air and Jeju Air introduced unpaid leave programs, while Jin Air postponed safety incentive payments to employees. Korean Air, Asiana Airlines and other carriers have also put emergency management measures in place as the cost surge ripples across the sector. The response shows that the impact is no longer limited to ticket pricing and fuel surcharges, but is affecting staffing, scheduling and day-to-day operating decisions across the industry.
South Korea budget carriers face sharper strain
South Korea’s budget airlines are particularly exposed because they depend heavily on price-sensitive leisure travel and typically operate with thinner financial buffers than full-service rivals. Higher fuel surcharges have added to the burden for passengers on medium- and long-haul routes, while rising oil prices have made international operations more expensive even before carriers account for broader currency pressure. The result has been a sharper operational response from airlines whose business models are built around keeping fares low and aircraft utilization high throughout the year.
The latest cuts come after airlines posted solid first-quarter earnings, but the fuel shock has quickly altered operating conditions as the second quarter gets underway. Financial strain is already visible at some carriers. T’way Air has posted losses for two consecutive years and had a debt ratio above 3,400% at the end of 2025, while Air Premia ended last year in a state of capital impairment. Together, the figures highlight how rapidly higher oil prices are testing South Korea’s airline sector. – By Content Syndication Services.