Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Incheon airport reports solid earnings on strong demand for Japan, China routes
An aerial view of Incheon International Airport / Courtesy of Incheon International Airport Corp.
By Lee Min-hyung
Incheon International Airport Corp. (IIAC) has posted robust first-quarter earnings, backed by steady demand on routes to Japan and a rise in travelers from China, the airport operator said Tuesday.
The company reported that passenger traffic reached 19.78 million in the January-March period, up 7 percent from a year earlier. Its operating profit climbed 1.9 percent to 230.2 billion won ($156.3 million). Sales also jumped 5.4 percent to 706.8 billion won during the same period.
The growth was driven largely by sustained travel demand to Japan and a surge in Chinese visitors following the extension of visa-free policies for Chinese group tourists.
Increased traffic on these routes offset declines on Southeast Asian and Middle Eastern routes, where passenger numbers fell 4.7 percent and 16 percent, respectively, due to security concerns and reduced flight operations.
Despite ongoing geopolitical uncertainties — including the Russia-Ukraine war and Middle East conflict — the airport operator said no immediate shock to air travel demand has been observed, but warned that rising oil prices and potential flight reductions could weigh on growth in the coming quarters.
For 2026, the operator forecast a modest increase in passenger volume to 75.07 million, up about 2 percent from a year earlier, signaling a gradual recovery trajectory.
While some airlines are scaling back Southeast Asian routes due to higher fuel costs, demand for Japan and China routes is expected to remain resilient, limiting the overall impact, according to IIAC.
It added that it has maintained stable surplus momentum following the pandemic, although rising outsourcing costs and depreciation expenses have tempered profit growth to some extent.
A passenger jet from Asiana Airlines takes off at Incheon International Airport, Thursday. Yonhap
The operator also highlighted progress in its large-scale aviation maintenance, repair and overhaul (MRO) complex. The first aircraft — a Boeing 777 — is scheduled to arrive later this month for conversion from passenger to cargo use. The process is expected to take about 180 days, longer than usual, to allow for workforce training and system stabilization.
The MRO complex, spanning 2.35 million square meters, aims to attract advanced maintenance and conversion facilities by 2032. Once fully operational, the project is expected to create around 5,000 jobs and generate an estimated 1 trillion won in annual economic output over 10 years.
IIAC Acting President Kim Bum-ho said the company will continue to strengthen its competitiveness in the global MRO market, while also exporting its airport operation expertise worldwide.
“We will drive the growth of Korea’s aviation industry by exporting our maintenance know-how and establishing a cutting-edge aviation complex to elevate our position in the international MRO market,” he said.