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South Korea’s aviation market is experiencing a robust recovery, with international passenger traffic at Incheon International Airport nearing pre-pandemic levels. In the first quarter of 2024, international passenger numbers reached 17.18 million, recovering 95.1% of the 18.06 million passengers recorded in the same period of 2019. This strong resurgence in demand is driving significant changes in market dynamics and strategic adjustments by airlines and airport authorities.

The Ministry of Land, Infrastructure and Transport (MOLIT) is closely monitoring the market, particularly regarding the potential impact of Korean Air’s planned acquisition of Asiana Airlines. Combined, these two full-service carriers operate 104 international routes, with Korean Air handling 70 and Asiana 34. The MOLIT plans to adjust its aviation policies mid-year to support the industry’s growth and stability.

Low-cost carriers (LCCs) have significantly expanded their presence in the international market. In Q1 2024, LCCs carried 6.8 million international passengers, securing a 40.5% market share, a substantial increase from their 25.1% share in 2019. Full-service carriers (FSCs), including Korean Air and Asiana, held 59.5% of the market in Q1 2024, down from 74.9% in 2019. This shift indicates a growing preference for LCCs among international travelers.

Incheon International Airport Corporation is preparing for future demand by accelerating the construction of Terminal 2 Phase 4. This expansion, expected to be completed by 2029, will increase the airport’s annual passenger capacity from 77 million to 100 million, adding 23 million new slots. Additionally, MOLIT aims to diversify international routes from Gimpo International Airport beyond its current three routes (Haneda, Taipei, Osaka) by potentially adding more destinations and encouraging various airlines to operate them. Korean Air and Asiana currently operate a combined 14 international routes from Gimpo, with Korean Air having 9 and Asiana 5. Ten airlines, including five LCCs and two FSCs in addition to Korean Air and Asiana, already operate international flights from Gimpo.

The recovery signifies a dynamic period for South Korea’s travel industry, with both established and emerging carriers adapting to evolving passenger demands and infrastructure enhancements.

Key Points
* International passenger traffic at Incheon International Airport in Q1 2024: 17.18 million passengers.
* Incheon International Airport’s Q1 2024 international passenger traffic recovery rate: 95.1% of pre-pandemic (2019) levels.
* International passenger traffic at Incheon International Airport in Q1 2019: 18.06 million passengers.
* Total international routes operated by Korean Air and Asiana Airlines: 104 routes.
* International routes operated by Korean Air: 70 routes.
* International routes operated by Asiana Airlines: 34 routes.
* International passengers carried by LCCs in Q1 2024: 6.8 million passengers.
* LCC international market share in Q1 2024: 40.5%.
* FSC international market share in Q1 2024: 59.5%.
* LCC international market share in 2019: 25.1%.
* FSC international market share in 2019: 74.9%.
* Expected completion of Incheon Airport Terminal 2 Phase 4 construction: 2029.
* Targeted annual passenger capacity of Incheon Airport after Phase 4 expansion: 100 million passengers.
* Current annual passenger capacity of Incheon Airport: 77 million passengers.
* Planned increase in Incheon Airport’s annual capacity: 23 million passengers.
* Combined international routes of Korean Air and Asiana from Gimpo International Airport: 14 routes.
* Korean Air’s international routes from Gimpo: 9 routes.
* Asiana’s international routes from Gimpo: 5 routes.
* Number of airlines operating international flights from Gimpo: 10 airlines.
* Number of LCCs operating international flights from Gimpo (excluding Korean Air/Asiana): 5.
* Number of FSCs operating international flights from Gimpo (excluding Korean Air/Asiana): 2.

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