Korean Air to Charge Fees for In-Person Ticket Purchases Starting This November

"Charging Large Service Fees Is Common Among Global Airlines"

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Korean Air has decided to impose a service fee for purchasing international flight tickets in person starting this November. This move is interpreted as a measure to expand non-face-to-face services and improve management efficiency amid the ongoing lack of improvement in the industry due to the COVID-19 pandemic.

According to the aviation industry on the 4th, Korean Air will charge a service fee of 30,000 KRW when purchasing or changing international flight tickets at service centers, city branches, and airport branches starting November 1. This also applies when purchasing international flight tickets or seat upgrades using mileage.

However, this fee does not apply to ticket purchases made through Korean Air’s official website or mobile website. Additionally, it is not applicable for infants under 2 years old who do not occupy a seat, first class and Prestige class tickets, force majeure situations such as airline schedule changes, prepaid tickets, and ticket purchases using credit vouchers.

A Korean Air official explained, "Most airlines and travel agencies worldwide also charge face-to-face service fees considering the human and material costs involved in ticket issuance," adding, "This decision was made to promote non-face-to-face services and enhance work productivity through the expansion of online services due to COVID-19."

Industry insiders interpret the imposition of such service fees as part of management efficiency efforts in response to the worsening profitability of airlines that began in earnest last year. Previously, airlines have been focusing on reducing fixed costs as the oversupply issue triggered by the boycott of travel to Japan emerged last year. For example, Korean Air and Asiana Airlines converted domestic airport counters to dedicated counters for checked baggage starting October last year, and Jeju Air charges a fee of 3,000 KRW per passenger for issuing boarding passes at domestic airport counters.

Closures of overseas and domestic branches are also continuing. Korean Air closed its Europe and Southeast Asia regional headquarters last month citing "management efficiency," while Asiana Airlines and Air Busan suspended operations at Gimhae Airport and Daegu Airport branches respectively last year. An industry official said, "In the air transportation industry, labor costs are the second largest fixed cost after fuel costs," adding, "Since non-face-to-face channels such as social network services (SNS) and mobile apps have become common among customers recently, such cost-saving measures are likely to be less burdensome for each airline."