They said that after diplomatic disputes with China over the deployment of Sade in 2017, Korean ICACs dependence on Japans course increased, but in the first half of this year, the number of South Korean tourists declined, fearing further impact on their profitability.
In addition, Japanese media reported that Tokyo authorities were considering tightening the issuance of Korean visas. If this happened, Jeju Airlines would bear the brunt. Because of its high reliance on Japanese airlines, the first quarter of this years Japanese airline sales amounted to 93.3 billion won, accounting for 25.65% of the total sales. Dewey and True Airs Japanese routes accounted for 30.6% and 24% of total sales, respectively.
Yang Jihuan, an analyst at Daxin Securities in South Korea, said: Although the report on tightening visa requirements is not yet clear, it is unlikely to happen. Whether this happens or not, its hard to predict that Jeju AirlinesJapanese airline sales will improve.
According to data released by the Korean Tourist Commune on July 7, the number of South Korean tourists to Japan from January to May this year was 3.25 million, an annual decrease of 4.7%. However, with the deterioration of relations between South Korea and Japan, the number of South Korean tourists to Japan this year is expected to decline for the first time in eight years.
Source: Responsible Editor of Xingzhou Daily: Liu Jiayi_NBJS8465