News / South Korean low-cost carriers target growing air e-commerce traffic

Photo: Eastar Jet

South Korean low-cost carriers are moving into the air freight business as e-commerce traffic boosts volumes and demand.

Yesterday, Eastar Jet, which lost out in the race to acquire Asiana Airlines’ cargo business, re-entered the sector after five years.

It re-applied for an air operator certificate in March last year, allowing it to restart its cargo business and improve its chances of acquiring Asiana Cargo, but lost out to Air Incheon.

Eastar carried belly cargo on a passenger flight from Incheon to Bangkok yesterday, and next month it will sell belly cargo space on flights from Incheon to Tokyo, Osaka, Taipei, Shanghai and Zhengzhou.

Figures from the Ministry of Land, Infrastructure and Transport show that last year, air cargo on international flights from South Korea was up 12% on 2023, at 4.19m tonnes – the Americas accounted for 870,000 tonnes, China 710,000 tonnes and Europe 610,000 tonnes.

Last month, another South Korean LCC, T’way Air, announced it was targeting more air cargo by hoping to deploy B777-300ERs, which have more belly cargo space than its A330s.

As more consumers worldwide buy from Chinese e-commerce platforms such as AliExpress, Temu and Shein, growing freight demand has powered global air freight rates. Furthermore, rocketing container freight rates, due to the prolonged Red Sea crisis, made shippers turn to air cargo as an alternative.

And the Korean Air-Asiana combination is expected to create an enlarged LCC with their respective subsidiaries, Jin Air and Air Busan, beefing up low-cost carrier air cargo offerings.

Full-service carriers have dedicated freighter fleets, but LCCs cater mainly for travellers and set space aside for cargo, mainly transporting smaller items such as electronic products, auto parts, clothing and fruits.