Korean Air is strengthening its strategy in the North American market. Starting next month, it plans to increase the frequency of Airbus A380 operations on U.S. routes to expand flights to the U.S. It is also moving to expand its network in North America and Latin America through the acquisition of equity in Canadian airline WestJet.
According to the airline industry on the 16th, Korean Air has planned to operate the Airbus A380 four times a week on the Incheon to Los Angeles (LA) route from next month until October 25th. During the peak season in August, it is expected to increase operations to five times a week. Previously, a Boeing 747 was used on the Incheon to LA route, but it is reported that the A380 will be deployed to increase flight frequency. Korean Air also plans to increase the frequency of its A380 operations on the Incheon to New York route to seven times a week.
The A380 is a super-large aircraft with 400 seats. Korean Air currently operates five of the seven A380s it owns, excluding two that are scheduled for retirement. The aircraft is operated in rotation according to maintenance schedules. Korean Air had previously set a policy to sequentially retire the A380 due to high fuel costs and financial losses incurred when flying. However, with delays in the introduction of U.S. Boeing aircraft, it has changed its policy to operate the A380 more frequently.
Cho Won-tae, chairman of Hanjin Group, recently noted in an interview with CNN that passenger numbers on North American routes have decreased due to tariff policies from the Donald Trump administration. An industry insider said, "Most demand for North American routes originating in Korea involves passengers transferring at Incheon from China and Southeast Asia. However, due to the Trump administration's tariff war and anti-immigration policies, entry inspections have become more stringent, impacting transfer demand."
However, given the strong reservation demand, Chairman Cho's plan is to expand routes and flight frequencies to solidify Korean Air's presence in the U.S. market. Korean Air plans to add 40 Boeing aircraft by 2030 and subsequently purchase an additional 10.
Korean Air recently acquired equity in Canadian airline WestJet to enhance its competitiveness in the Americas. On the 9th, Korean Air decided to buy a 10% equity stake in WestJet from Canadian private equity firm Onex Partners for $220 million (approximately 300 billion won). Delta Air Lines, a long-time partner of Korean Air, will also acquire 15% equity in WestJet for $330 million (approximately 460 billion won).
WestJet, a low-cost airline founded in 1996, operates about 200 aircraft. It has a strong operational presence in North America, including Canada, the U.S., and Mexico, as well as in Central America, such as the Dominican Republic, Jamaica, and Costa Rica. Since 2012, Korean Air has continued its codeshare agreement with WestJet, which allows the two airlines to share and sell each other's seats, and plans to expand their codeshare routes in North America and Latin America through this equity acquisition.
The airline industry is paying attention to the strong relationships between Korean Air and Delta Air Lines reaffirmed during the equity acquisition process for WestJet. Delta owns 14.90% of Hanjin KAL, the holding company of Korean Air. Chairman Cho's side had previously secured Delta and others as friendly forces during the management dispute over Hanjin KAL to defend management rights.
Delta Air Lines plans to enhance the synergy of the airline alliance "SkyTeam" through joint investment in Korean Air and WestJet equity. Delta plans to sell 2.3% of its 15% equity in WestJet to Air France-KLM in the future, which is also a member of SkyTeam.