LCCs Face Mounting Losses Amid Economic Pressure
- Doyoung Lim
- Mar 30
- 1 min read
Mar 30, 2026
Doyoung Lim
Major airlines are facing surging oil prices, and the strengthening dollar is a concern. This phenomenon is evident among low-cost carriers (LCCs), most of which have to manage additional earnings falling from unpredictable external uncertainties. Most LCCs reported operating losses last year on the prolonged devaluation of the Korean won against the dollar, leading them to raise ticket prices. Furthermore, most airlines are reducing flight operations due to concerns over potential deficits.
Air Premia, which mainly focuses on mid- to long-haul routes, will cut back operations and reduce flights starting from April. According to the officials, at least 26 flights will not be operated on its Incheon-Los Angeles route and six on its Incheon-Honolulu route. Other airlines are also following Jin Air and Air Premia. Aero K will cease operations on several international routes, such as Cheonju-Ibraki and Cheonju-Narita, in June.
LCCs are under pressure to suspend unprofitable flights due to a fall in travel demand. Many airlines are particularly exposed to risks on international oil prices; they have no other choice but to reduce certain routes to prevent potential harm.
The one-dollar exchange rate, which was 1,428 won in late February, weakened to 1,509 won per dollar. This trend highlights the growing vulnerability of airlines to external economic shocks, raising concerns about LCCs.
