Asiana Focuses on Profitability Improvement... Charter Flights and Cargo Sales Concentration

Ahead of the Year of the White Rat in 2020, cargo made in Korea, destined to spread worldwide, is being loaded onto an Asiana Airlines cargo plane at Incheon International Airport Cargo Terminal with the rising sun in the background. Despite prolonged US-China trade conflicts and Japan's export restrictions, which have cast a shadow over the domestic and international economic outlook, there is hope that made in Korea products will expand across the globe in the new year.
Yeongjongdo - Photo by Kim Hyunmin kimhyun81@

[Asia Economy Reporter Yu Je-hoon] Asiana Airlines, which is facing a crisis due to the novel coronavirus infection (COVID-19), is working to improve profitability through a 'demand-tailored strategy.' Asiana Airlines plans to continue expanding charter flights for domestic businesspeople and overseas Koreans, while focusing its capabilities on cargo transportation.

According to the aviation industry on the 29th, Asiana Airlines will operate a charter flight on the 30th to transport about 140 Samsung Display engineers to Guangzhou, China. From the 29th to the 30th, Asiana Airlines will operate a total of four charter flights over two days, transporting about 840 passengers including Samsung Display engineers.

Since March, after the spread of COVID-19, Asiana Airlines has operated a total of 45 charter flights for domestic businesspeople and overseas Koreans. The number of passengers transported through these flights reached 11,609.

In addition, Asiana Airlines is also focusing on 'belly cargo' operations to respond to the increased international air cargo demand caused by the reduction in passenger flights. As a result, the transported tonnage in April increased by 3.5% compared to the previous year. The China and Europe routes increased by 13.6% and 15.6%, respectively.

By product category, sales from transporting IT products such as semiconductors and displays increased by 60% compared to the same period last year, while automobile parts and clothing increased by 61% and 27%, respectively. The total cargo division sales also increased by 106% compared to the previous year, indicating a significant improvement in profitability, according to the company.

This trend continues in May as well. For example, medical supplies including COVID-19 diagnostic kits increased by 100% compared to the previous year. On the 20th of last month and the 22nd of this month, charter flights were operated on the Incheon~Saipan route exclusively for transporting diagnostic kits.

Meanwhile, Asiana Airlines plans to resume operations on the Seattle route three times a week, the Singapore route twice a week, and the Sydney route once a week in June. Additionally, the Manila route will be increased to once a week, and the Frankfurt route to once a week, operating a total of 61 flights per week on 17 international routes. Furthermore, 17 additional temporary flights will be operated to defend profitability against business demand. On domestic routes, 306 flights per week will be operated on seven routes, recovering the operation rate to 91.4% of the plan.