"I thought, 'Shall I go on the overseas trip I missed?'... Why Airfare Prices Are Soaring Sky-High"

International Flight Supply Shortage and Surge in Global Oil Prices

Incheon International Airport.
Photo by Asia Economy

[Asia Economy Reporter Na Ye-eun] As the government lifts quarantine exemption measures for overseas arrivals, demand for overseas travel is exploding, but "expensive airfares" are becoming an obstacle to travel.

According to travel platform Triple's analysis of international flight ticket search indicators from the 1st to the 10th, popular destinations were resorts reachable within 4 to 5 hours, such as Guam, Danang, and Saipan. More than 62% of departures were concentrated between June and August, indicating a strong intention to travel abroad starting this summer vacation.

Additionally, looking at the airfare search indicators for major Philippine resorts on Triple from May 1 to 17, compared to the same period in March, Cebu increased by 475%, Boracay by 151%, and Bohol by 667%.

However, due to a shortage of international flight supply and a surge in international oil prices, airfare prices continue to rise. According to the industry on the 18th, round-trip airfare prices to London and Paris range from 2.2 million to 3.5 million KRW. Compared to 1.5 million to 2 million KRW in 2019, this is a significant increase. Airfares to Hawaii are also being sold at 1.7 million to 1.9 million KRW, twice as high as before COVID-19.

This is because international oil prices have sharply increased, pushing fuel surcharges on airfares to record highs. Korean Air has decided to raise fuel surcharges from 33,800 to 256,100 KRW this month to 37,700 to 293,800 KRW next month, depending on flight distance.

There is also the impact of limited flight operations due to COVID-19. Incheon Airport had limited the number of aircraft arrivals per hour to 10 flights but expanded it to 20 flights this month, which is still far less compared to pre-COVID-19 levels.

However, earlier, the Ministry of Land, Infrastructure and Transport announced a "Phased Recovery Plan for International Flights" to restore international flight operations to 50% of 2019 levels in four stages by the end of this year. By stage, international flights will increase to 520 flights per week in May and 620 flights per week in June. In July, international flights will be increased by 300 flights per week each month.

Meanwhile, Korean Air plans to increase flights by more than 30 times per week next month, focusing on Europe and the Americas routes. Asiana Airlines will resume operations on Rome and Paris routes. T'way Air is also preparing to increase flights on routes to Tokyo, Osaka, Fukuoka, Guam, and Saipan.