Incheon Airport Reports Strong Q1 Results Despite War... Boosts MRO Competitiveness

19.78 Million Passengers in Q1, Maintaining Stable Profitability
Passenger Demand Expected to Rise Through 2026 Despite High Oil Prices from the Middle East
Advanced Aerocomplex Project Anticipated to Generate 10 Trillion Won Economic Impact

Incheon International Airport Corporation continued its growth in both passenger traffic and financial performance in the first quarter, despite facing the dual challenges of high exchange rates and elevated oil prices.

Panoramic view of Incheon International Airport. Incheon International Airport Corporation

On April 21, during a media briefing at the Incheon Airport press room, the corporation announced that passenger numbers for the first quarter reached 19.78 million, a 7% increase compared to the same period last year.

The main drivers behind this growth were the sustained popularity of travel to Japan and an increase in Chinese visitors to Korea, following the extension of visa exemptions for Chinese tour groups. Although passenger numbers decreased by 4.7% on Southeast Asian routes and 16% on Middle Eastern routes due to local security concerns and reduced flight operations, the increase in passengers on Japanese and Chinese routes offset these declines, leading to overall passenger growth.

The corporation also provided an analysis of passenger demand fluctuations related to the war between the United States and Iran. Although there was no short-term impact from the conflict, it is expected that, from the second quarter onward, rising oil prices and flight cancellations will slightly slow the upward trend in passenger demand. In 2026, passenger demand is forecast to grow at a moderate pace, reaching 75.07 million—about 2% higher than last year's 73.56 million.

However, the company explained that if the conflict between the United States and Iran becomes prolonged, higher fuel surcharges and an overall economic downturn could further slow the growth in passenger demand.

In the first quarter of this year, the corporation achieved sales of KRW 706.8 billion, a 5.4% increase compared to the same period last year. Operating profit was KRW 230.2 billion, up 1.9% year-on-year. Net profit for the period was KRW 145.3 billion, a decrease of 25%. Since the COVID-19 period, the company has consistently maintained stable profits and rising sales, but increased outsourcing costs and depreciation have impacted both operating and net profits.

Aerial view of the Incheon International Airport MRO Complex. Incheon International Airport Corporation

The Advanced Integrated Aviation Complex development project is also progressing in phases. This large-scale project involves attracting conversion and maintenance facilities to a 2.35 million square meter site within Incheon Airport. By 2032, the corporation plans to actively attract specialized conversion and maintenance facilities to foster synergy through facility integration and, in the long term, link the airport economic zone with the surrounding region's industrial ecosystem. Once the project is firmly established, it is expected that overseas maintenance work will be relocated to Korea, creating approximately 5,000 jobs and generating an average annual production inducement effect of about KRW 1 trillion over the next ten years.

Starting at the end of this month, the first aircraft will be delivered to the conversion facility within the Advanced Integrated Aviation Complex, where it will undergo conversion from a passenger plane to a freighter. The model to be delivered is a Boeing B777, which will arrive around the end of the month and undergo a conversion process lasting approximately 180 days, with completion expected around October this year. While converting a passenger aircraft to a freighter typically takes up to 120 days, this initial conversion is projected to take about 60 days longer to allow for workforce training and the establishment of systematic procedures. Currently, the conversion facility is a 2.5-bay setup, capable of handling two wide-body aircraft and one narrow-body aircraft simultaneously. In the future, it will be able to convert up to six aircraft per year. A wide-body aircraft is characterized by having two aisles between seat rows, while a narrow-body aircraft has a single aisle.

The corporation also emphasized its ongoing efforts to improve regulations in order to promote the activation of the Advanced Integrated Aviation Complex. Through close consultations with Incheon Airport Customs and the Korea Customs Service, the complex has been designated a Free Trade Zone (FTZ), making it easier to import and export the parts needed for conversion and maintenance. Additionally, the import process for aircraft parts has been streamlined, reducing customs clearance time by approximately 70% and enabling an immediate response in emergency situations.

Acting President Kim Beomho stated, "Our continued growth despite uncertain external conditions has been possible thanks to nationwide support and interest. Going forward, Incheon Airport will not only export its operational know-how worldwide but will also ensure the successful establishment of the Advanced Integrated Aviation Complex, further strengthening our competitiveness in the international Maintenance, Repair, and Overhaul (MRO) market and driving the advancement of Korea's aviation industry."

This content was produced with the assistance of AI translation services.