Korean Air to share profits with local tour companies

The Korea Times

The Korea Times

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Wed, November 29, 2023 | 04:45

Companies

Korean Air to share profits with local tour companies

Posted : 2020-01-23 16:02

Updated : 2020-01-23 17:33

Korean Air will share part of the company's profits with local tour operators hit by lower demand for travel to Japan. / Courtesy of Korean Air

By Kim Se-jeong

Korean Air said Thursday it will share part of the company's profits with local tour operators suffering from lower demand for travel to Japan.

The national flag carrier said that for two months it will take 3 percent of its ticket sale profits from Korea-Japan routes and donate the money to 800 local tour companies that it has worked with.

"Behind the decision was Chairman Cho Won-tae's strong belief that people help each other in times of difficulty," an airline official said. "It's a tough time for Korean Air, but we would like to struggle together with local businesses, instead of trying to survive alone."

The number of Korean travelers to Japan has dropped dramatically since last summer when Japan imposed an export ban on materials critical to Korea's semiconductor industry. The ban triggered an anti-Japan movement among Koreans who began boycotting Japanese consumer goods and travel to the country.

The tourism industry was hit hard, with tour reservations dropping more than 50 percent, according to news reports.

Korean Air's flight reservations for Japan also fell more than 50 percent last year. It halted flights between Busan and Sapporo and reduced capacity on other Japanese routes.

skim@koreatimes.co.kr