Domestic Flights' Surprise 'Two-Day Boom'... First Rebound Since COVID-19

Domestic Passenger Numbers from August 1-2 Increase by 7.3% Year-on-Year
First Positive Turn Since COVID-19 Intensified in February

As the peak vacation season begins, the domestic terminal at Gimpo Airport in Seoul is bustling with travelers on the 2nd. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Yu Je-hoon] Despite the crisis in the aviation market caused by the novel coronavirus infection (COVID-19), the number of domestic passengers successfully made a 'surprise' rebound over two days.

According to the aviation industry on the 6th, the number of domestic passengers at 14 airports nationwide (excluding Incheon Airport) from the 1st to the 2nd reached 418,631, an increase of 7.3% compared to 390,162 last year. This is the first time since the aviation passenger decline began in earnest in February due to the COVID-19 outbreak that passenger numbers have rebounded compared to the previous year.

An official from Korea Airports Corporation explained, "In the case of domestic flights, the monthly passenger numbers increased by 7.5% compared to the previous year until January, but from February, they decreased by about 40%, continuing the downward trend. We understand that this is practically the first time since February that there has been an increase compared to the previous year."

The main reason for this surprising increase is attributed to the fact that overseas travel was virtually halted due to COVID-19, shifting summer vacation demand to domestic travel. In fact, national airlines, centered on low-cost carriers (LCCs), have recently been actively expanding domestic routes, and as of July, the number of domestic flights has recovered to 99% and passenger numbers to 90% compared to the previous year.

The fact that these dates fell on a weekend during the peak season was also a major factor. The number of domestic passengers, which increased over the two days, reversed and declined again on the 3rd, a weekday, ending the 'two-day reign.'

Therefore, there are many evaluations that it is uncertain whether this rebound trend will continue. Although the peak season has begun, the unprecedented prolonged rainy season recently may hinder travel demand.

Although domestic flights are showing a clear recovery trend, profitability improvement for each airline remains distant. Jeju Air actually raised its domestic market share to 17.2% in the second quarter, ranking second overall, but due to the suspension of international flights and low domestic fares, it posted sales of 35.7 billion KRW and an operating loss of 84.7 billion KRW, resulting in losses exceeding sales.