Korean Air has renovated the interior facilities of some Airbus A380 aircraft in operation. The A380 is a model that Korean Air has stated will be retired by 2026 for operational efficiency. With the aircraft retirement approaching in about two years, there are speculations about a possible change in Korean Air's aircraft operation strategy.
According to the aviation industry on the 30th, Korean Air recently replaced the seat cushions on some Airbus A380 aircraft. The new seat design has been applied by Korean Air since last year and features a patchwork of colorful fabric pieces, patterned after the colorful sleeves of traditional Hanbok. The first-class seats were changed from the existing blue to shades of black.
Consequently, some observers suggest that the retirement of the A380 model, which is scheduled, may continue even after 2026. Earlier, Cho Won-tae, chairman of Hanjin Group, noted that the A380 is expected to leave the Korean Air fleet by 2026, and the Boeing 747-8I model will also be retired by 2031. The A380, known as 'a hotel in the sky,' was first introduced by Korean Air among national carriers in 2011. However, concerns have arisen due to its maximum seating capacity of 853, requiring four engines, its low fuel efficiency, and difficulty in filling all the seats.
Due to poor efficiency, airlines have postponed or canceled their introduction, and Airbus announced the cessation of production in 2019. Subsequently, as passenger demand plummeted due to the COVID-19 pandemic, airlines such as Lufthansa, Qatar Airways, Singapore Airlines, and Air France announced the early retirement of the A380. Air France retired all of its A380s in 2020.
Korean Air owns 10 A380s, and Asiana Airlines, which is about to merge, operates six A380s, necessitating efficiency measures. The Ministry of Land, Infrastructure and Transport has also reported plans to retire three A380s this year, thereby commencing disassembly operations.
However, as long-haul route demand increases and challenges arise in disposing of A380s, it seems that the airline has proceeded with seat modification work. Recently, the aviation industry has been facing delays in the recovery of aircraft manufacturers' supply chains, leading to a backlog in new aircraft deliveries.
Korean Air recorded a cumulative revenue of 13.369 trillion won and an operating profit of 1.6461 trillion won in the third quarter of this year, marking increases of 14.1% and 9.3%, respectively, compared to the same period last year. This improvement is attributed to a focus on enhancing long-haul routes with higher added value, rather than competing in the low-cost carrier (LCC) and short-haul markets.
In the third quarter of this year, the proportion of revenue from routes to North America (39%), Europe (18%), and Oceania (2%) accounted for 59% of Korean Air's total revenue. In the third quarter of 2019, prior to COVID-19, this figure was 54% (30% North America, 21% Europe, 3% Oceania). An analyst at Korea Investment & Securities noted that "the decisive reason for the improvement in Korean Air’s revenue is due to long-haul North American routes and business-class seats."
A representative of Korean Air stated, "There is no specific timeline for the retirement of the A380 model," adding, "We are making various efforts to provide better service during the period that the aircraft is operational."