Panic Subsides
The effects of Middle East Respiratory Syndrome (MERS) on the airline industry are gradually abating. It still needs more time to return to the level it used to be, but the worst is over now.
According to the airline industry on July 7, Korean Air’s reservation rate from July to Aug. reached 70 percent as of last weekend. The figure is about 2 percentage points higher than that of a year ago. Considering the fact that the occupancy rate for international flights last month was 67 percent, which was 7 percent lower than a year earlier, people are now less afraid to travel abroad. The cancellation rate for reservations is also significantly decreasing. The figures have constantly decreased from 5,000 on June 12 to 4,300 on June 21, 2,400 on June 26, and only 500 on June 30.
For Asiana Airlines, the occupancy rate in June was 72.5 percent, which was 10.5 percentage points lower than 83 percent a year ago. However, the reservation rates in July and Aug. have returned to 80 percent and 84 percent, respectively. The figure in July is far lower than the 85.9 percent occupancy rate in July last year. However, the figure in Aug. is only 3.3 percentage points lower than 88 percent of the occupancy rate in Aug. last year. In particular, the occupancy rate for flights to China decreased to 58.6 percent last month, but the reservation rates in July and Aug. were 70.4 percent and 84.7 percent, respectively.
The number of people moving through Incheon International Airport is recovering as well.
From July 1 to 6, the figure stood at 630,000, showing a 13.5 percent decrease from a year earlier. It still records two digits of the drop, but is slightly lower than the 17 percent from June 20 to 30.