Airport operator optimistic for post-pandemic recovery next year
Travelers line up to board on international flights from Gimpo International Airport in southwestern Seoul, Thursday. Courtesy of Korea Airport Corp.
The Korea Airports Corp. (KAC) is expected to see a turnaround next year in the number of air passengers, a year earlier than anticipated, as seven international airports across the country, excluding Incheon International Airport, are expected to surpass their pre-pandemic records for international travelers as demand grows for inbound tourism and newly established flight routes.
“We expect to see over 10 million international travelers by the end of this month. By the end of this year, the figure is expected to reach 13 million, which is a 64 percent recovery to pre-pandemic levels from 2019,” KAC President Yoon Hyeong-jung said during a press conference at the company’s headquarters in Seoul, Thursday.
Korea Airport Corp. President and CEO Yoon Hyeong-jung speaks during a press conference at the KAC headquarters, Thursday. Courtesy of Korea Airports Corp.
The KAC operates seven international airports at Gimpo, Gimhae, Jeju, Cheongju, Daegu, Muan and Yangyang, which saw a total record high of 20.3 million international travelers in 2019 before the COVID-19 pandemic.
Spurred by growing travel demand after China lifted restrictions on group tours to Korea and new air routes connecting Gimpo to Taiwan’s Kaosiung, Daegu to Mongolia and Cheongju to several Japanese and Southeast Asian cities, the KAC estimates that the figure will surpass 22 million next year.
Thus, the airport operator expects a turnaround starting next May, which is one year sooner than its original estimate of 2025, thereby creating a net income of around 21.1 billion won by year's end.
The KAC also plans to work with overseas airlines during a global aviation route development conference in Istanbul, which is scheduled for later this month, to establish additional international routes connecting Gimhae airport to the Americas and Europe, Yoon said.
Gimhae airport, located in the country’s second-largest city of Busan on the southeastern coast, operates flights only to neighboring Asian countries including Japan, China, Vietnam, Singapore and Thailand despite growing local demand for long-distance international travel.
The airport takes only about 16 percent of the country’s international air routes, which is significantly lower than the global average of countries’ second airports which stands at around 50 percent, Yoon explained, underscoring the inconvenience experienced by southerners having to travel to Incheon to go on long-distance trips.
In celebration of the 20th anniversary of the Gimpo-Haneda route, which was established after the Korea-Japan summit in 2003, the company seeks to develop the airport into a Northeast Asia business hub airport, connecting Korea, China and Japan.
The KAC will enhance the existing air route connection between the three countries’ capitals ― Seoul, Beijing and Tokyo ― as well as develop additional business travel routes between Seoul and the major cities of Shanghai and Osaka.
The airport plans to introduce fast-track gates, a business lounge and coworking spaces for business travelers to convene.
Also, in celebration of the flight route’s anniversary, Gimpo airport will host several cultural events in November featuring the two countries’ cultures, including a fashion show and photo and food exhibitions.
Meanwhile, the KAC expects to sign a 34 billion won-scale government-to-government (G2G) deal this month with the Peruvian government to assist in management of Chincero International Airport until 2026.
The company has shared its airport management know-how based on 43 years of experience operating international airports in 13 countries.
If signed, it will be Korea’s first G2G deal in the infrastructure sector and the company will assist Peru’s Ministry of Transport and Communications to make plans for airport management, acquire airport certificates and obtain equipment and facilities, which will all be completed in 2026.
“The KAC will work to accelerate the recovery of international flight demand to go beyond pre-pandemic levels from 2019 and demonstrate the company’s expertise with international projects in market expansion,” Yoon said.