Airlines on high alert over strengthening dollar, prolonged oil price hike (opens original article in a new tab)

Korea's aviation industry is experiencing significant financial challenges due to rising fuel costs and a weakening won, leading to projected operating losses for major airlines and a shift toward short-haul routes.

• Korea's major airlines face combined operating losses of 823.6 billion won in Q2 due to high oil prices and a weakening won
• Fuel costs account for 30% of airline operating costs, with a 70% increase in Singapore kerosene prices since February
• Airlines are shifting focus to short-haul routes in Japan and China to mitigate losses from fuel surcharges and currency fluctuations
• Asiana Airlines is projected to have the largest loss at 349 billion won, followed by Korean Air at 230.3 billion won
• Low-cost carriers also expect significant operating losses during the same period