May 26, 2021 13:02
Low-cost carriers in Korea are teetering on the edge of collapse as losses mount due to the coronavirus pandemic.
Flag carriers Korean Air and Asiana Airlines are managing to make up for losses in passenger transport by hauling more cargo, but budget airlines rely heavily on flying people.
"We've done everything we can including capital increases and loans while our assets have been depleted," a budget airline executive said. "If the situation doesn't get better soon, we will see bankruptcies."
Top-ranked Jeju Air suffered an operating loss of W85.9 billion in the first quarter of this year, while Jin Air's operating loss totaled W60 billion, T'way Air's W44.8 billion and Air Busan's W47.2 billion (US$1=W1,123). That brings their combined losses to W237.9 billion.