North Korea aviation: Korea's airlines may benefit from liberalisation
South Korean airlines have started preparing for the potential opening up of the North Korean market. Airspace restrictions may be lifted in the near term, resulting in significant fuel savings, followed by services from Seoul to Pyongyang.
North Korea is an underserved market as it currently has less than 200,000 annual operated seats, despite a population of more than 25 million. Outbound demand should increase significantly if travel restrictions are eased. North Korea tourism also has huge potential, driving inbound demand along with ethnic traffic from South Korea as families are reunited.
South Korean carriers will likely be the main beneficiaries if the North Korean aviation market opens up. South Korea’s largest airline, Korean Air, is well positioned and eagerly awaiting opportunities in North Korea but South Korean LCCs may be best positioned, given that North Korea’s future market could consist mainly of price sensitive leisure passengers.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 1,000 News Briefs every week and comprehensive data and analysis on thousands of companies around the world.