Korean airlines expand exclusive routes for profitability

Korean airlines expand exclusive routes for profitability

최초입력 2025.08.25 11:28:22

(Korean Air)

South Korean airlines are expanding exclusive routes in an effort to avoid margin-eroding competition on popular services and capture niche demand in emerging destinations.
According to the airline industry on Sunday, full-service carriers (FSCs) such as Korean Air Lines Co. and Asiana Airlines Inc., along with low-cost carriers (LCCs) including Jeju Air Co. and T’way Air Co., are actively pursuing routes without domestic rivals.
Korean Air became the first Korean carrier to launch twice-daily flights between Incheon and Kobe in April, reinforcing its presence in smaller Japanese cities where demand is rising. In September 2024, it also began three weekly flights on the Incheon–Lisbon route, the only direct service from Northeast Asia to the Portuguese capital.
This year, Asiana Airlines resumed flights from Incheon to Chongqing and Chengdu, both exclusive routes in China, to capture growing traffic under the Korea–China visa waiver programs. After China allowed visa-free entry for Korean tourists last year, Korea will reciprocate by allowing temporary visa-free entry for Chinese group tourists starting in late September.
LCCs are also targeting niche demand through Korea’s regional airports beyond Incheon, such as Busan, Jeju, and Cheongju.
As of August, Jeju Air operated 15 exclusive routes across Japan, Greater China, and Southeast Asia, including Busan–Shijiazhuang and Jeju–Xian and Macau, building a dense regional network.
Eastar Jet Co. operates six exclusive routes, including Incheon–Tokushima, Busan–Kumamoto, Chiang Mai, and Phu Quoc, as well as Cheongju–Zhangjiajie. Its Busan–Chiang Mai and Busan–Phu Quoc services highlight a strategy tailored to Southeast Asia demand from Korea’s southeast region. The airline has also hired new cabin crew in Busan to support operations as it expands.
T’way Air has launched new mid-to-long-haul exclusive services this year, including Incheon–Zagreb and Incheon–Bishkek. These European and Central Asian markets face limited competition but generate steady travel and business traffic.
Other carriers are also differentiating with regional exclusives.
Air Busan Co. operates routes such as Busan–Bali, Busan–Matsuyama, and Busan–Kaohsiung, while Jin Air Co. currently offers exclusive services on Incheon–Miyakojima, Incheon–Ishigaki, Incheon–Kitakyushu, and Busan–Clark.
By focusing on exclusive routes, airlines can avoid fare dumping in crowded markets while securing steady demand from passengers seeking direct flights. Routes closely tied to a single carrier also strengthen brand recognition and repeat bookings.
“Exclusive routes require heavy upfront investment, but once demand stabilizes they help maintain fare stability and secure customer loyalty, making them valuable long-term assets,” said an LCC official.
Challenges remain.
Exclusive routes are harder to promote, vulnerable to seasonal demand swings, and more costly due to the need for local ground staff and marketing. Limited supply can also raise fares too high to sustain direct-demand markets. To offset this, carriers are rolling out fare promotions, joint campaigns with online travel agencies, and bundled services such as local tours and airport-to-city transport.
“The key is not about being the first to open a route, but whether it can be sustained,” an industry official said. “Seasonal demand management, schedule optimization, and local partnerships must come together to make a route truly competitive.”
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Korean airlines expand exclusive routes for profitability

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