China routes emerge as key revenue source for struggling Korean LCCs

China is emerging as a critical earnings lifeline for Korea’s struggling low-cost carriers (LCCs), offering them access to fast-growing passenger demand and lucrative business traffic as growth in other short-haul markets loses steam. Some 2.13 million passengers traveled between Korea and China in August, surpassing the previous monthly record of about 2.07 million set in August 2016, before the fallout from the deployment of a U.S. missile defense system in Korea severely disrupted bilateral tourism. The August figure was up 27.5 percent from a year earlier and 9.7 percent from July, according to data from the Ministry of Land, Infrastructure and Transport. The rebound comes as Korean airlines are gaining access to some of the most commercially attractive China routes. In the latest allocation of traffic rights, the government gave major LCCs additional slots on routes linking Seoul with Beijing and Shanghai, as well as Guangzhou, Dalian and other Chinese cities. Jeju Air and Eastar Jet each secured seven weekly flights on the Incheon-Beijing route, while Parata Air and Air Premia re