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Competitive dynamics are shifting for South Korean LCCs

Analysis

The tragic crash of a Jeju Air 737-800 on 29-Dec-2024 has turned the spotlight on the South Korean LCC industry, a sector that is in the process of undergoing significant change.

It is yet to be determined what the ramifications of the crash will be for Jeju Air and other airlines.

However, even aside from that, the LCC market is in a state of flux as 2025 begins.

Jeju Air is the largest of the South Korean LCCs, although it will soon be overtaken when Korean Air's and Asiana's LCC subsidiaries are merged. And another independent LCC, T'Way, has also been boosted as a side-effect of the seismic Korean Air-Asiana deal.

Meanwhile, Eastar Jet is back on a growth track, with new ownership.

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