Airlines are shifting their international strategy towards short-haul routes as high fuel prices persist. The number of flights to Japan and China has significantly increased, reflecting a growing competition among low-cost carriers (LCCs) in the short-haul market, driven by heightened sensitivity to fuel surcharges among travelers.
According to the Ministry of Land, Infrastructure and Transport's aviation information portal, flights to Japan and China totaled 29,862 and 24,561, respectively, during July and August of this year. This marks an increase of 5,865 flights compared to the same period last year.
In contrast, flights to North America and Europe saw only modest increases of 440 and 178, respectively, totaling just 618 additional flights. The increase in flights to Japan and China is approximately 9.5 times greater than that of North America and Europe.
This trend is even more pronounced when considering the overall international flight numbers. During the same period, total international flights increased by 4,031, with the rise in flights to Japan and China far exceeding this total. In fact, flights to other international destinations decreased by about 1,800.
The focus on short-haul routes is largely attributed to high fuel prices. Since the outbreak of the Middle East conflict in February, international oil prices have surged, significantly increasing the cost burden of operating flights. Fuel costs typically account for about 30% of an airline's total operating expenses.
As of September 23, international oil prices fell below $100 per barrel due to expectations of increased oil supply from the Middle East, but they remain high compared to earlier this year. Brent crude was trading at around $72 per barrel at the end of February, just before the conflict began, and was priced at $99.25 per barrel on September 22, reflecting an increase of over 37%. Compared to the start of the year, prices have risen by more than 60%, contributing to soaring operational costs for airlines.
In this context, the efficiency of operating short-haul routes becomes increasingly important. Short-haul flights have shorter flight times, allowing airlines to deploy the same aircraft multiple times a day, thus increasing aircraft utilization. Additionally, adjusting routes is relatively easier than for long-haul flights, which reduces the risk of profitability issues even when passenger demand is low.
Low-cost carriers, which may lack the resources or fleet capacity for long-haul operations, are particularly focusing on expanding services to Japan and China. For instance, Jin Air launched a new route from Incheon to Kobe last month and began service to Yichang, China, on September 17. The Yichang route will start with two flights per week and is expected to increase to four flights per week next month. Following the recent expansion of air transport rights between South Korea and China, other LCCs, such as Jeju Air and Eastar Jet, are also expanding their routes to major Chinese cities.
Moreover, travelers' preference for short-haul destinations is intensifying competition among airlines for routes to Japan and China. As international oil prices rise, more travelers are opting for short-haul destinations where fuel surcharges are relatively lower. The international fuel surcharge for October has increased to 23 levels, up two levels from September, marking two consecutive months of increases.
For example, the fuel surcharge for Korean Air in October is set at 98,000 won for the shortest round trip, while long-haul flights can reach up to 725,200 won, a difference of about 7.5 times. An industry insider noted, "These days, many people prefer to travel to nearby places like Japan or China, as the difference in fuel surcharge amounts is significant, allowing them to mitigate the impact of rising fuel prices."
* This article has been translated by AI.
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