Jeju Air will suspend its routes to Guam and Da Nang, Vietnam. This decision comes as airlines operating these routes, such as Korean Air and Jin Air, have increased seat supply ahead of the launch of the integrated Korean Air, leading to reduced profitability.
According to the airline industry on August 27, Jeju Air has decided not to operate the Incheon-Guam and Busan-Da Nang routes during the winter season. Flights on these routes will be suspended from October this year until March 28 next year.
Although both routes have been popular due to demand from families and honeymoon travelers, profitability has recently declined due to oversupply. When the merger between Korean Air and Asiana Airlines was approved, the Korea Fair Trade Commission required that more than 90% of the 2019 seat supply be maintained on about 40 routes as a condition. Korean Air and Jin Air recently increased the frequency of the Incheon-Guam route from 14 to 21 flights per week, and from 7 to 14 flights per week, respectively.
A Jeju Air representative stated, "The business plan for the Incheon-Guam and Busan-Da Nang routes has been changed due to oversupply resulting from the corporate merger," adding, "For these routes, we are offering refunds and providing guidance on alternative airlines."
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