Low-cost carrier (LCC) Air Premia has drawn criticism from passengers due to frequent schedule changes and cancellations, with some of its aircraft now confirmed to be grounded. Concerns are rising that the airline, which should prioritize passenger safety, may be compromising reliability by aggressively expanding routes to boost profits, ultimately fueling passenger unease.
According to industry sources on April 10, two of Air Premia’s seven Boeing 787-9 aircraft (HL8387 and HL8388) are currently out of service for maintenance and safety inspections. The first aircraft, HL8387, is awaiting parts, while the second, HL8388, is undergoing repairs after impurities were found in its engine oil. The timeline for resuming normal operations remains uncertain.
This year, Air Premia has announced multiple cancellations on routes such as Incheon-Hong Kong and Incheon-Bangkok. Schedules for U.S. routes, including Incheon to San Francisco, New York, and Los Angeles, have also frequently changed. Complaints have flooded Korean-American community platforms like MissyUSA, with passengers reporting that Air Premia flights delayed by a day or two have disrupted their entire schedules.
The airline’s critically low number of aircraft is pinpointed as the main cause of its frequent cancellations and schedule changes. Unlike full-service carriers (FSCs), which maintain reserve aircraft to substitute in case of issues, Air Premia’s operations come to a halt when even a single plane is grounded, leading to repeated disruptions.
In fact, Air Premia holds the dubious distinction of leading domestic airlines in delays caused by “maintenance” issues. Among South Korean carriers, Air Premia recorded the highest annual delay rate at 2.7% (68 out of 2,479 flights). T’way Air followed at 1.1% (900 out of 79,675 flights), Air Busan at 0.91% (576 out of 63,178 flights), and Jeju Air at 0.89% (937 out of 105,298 flights). The maintenance delay rate, which reflects disruptions due to aircraft maintenance, is a key indicator of an airline’s safety and punctuality.
Since launching its first Los Angeles route in 2022, the fledgling LCC has expanded operations from five weekly flights to six in May 2023, and further to seven in May 2024. However, Air Premia has consistently faced delays and cancellations in 2023 and 2024 due to aircraft shortages and maintenance issues. With a limited fleet, even one or two grounded planes can trigger mass cancellations, passing the burden of disrupted schedules onto passengers.
Adding to the discontent, passengers have complained about subpar in-flight meals compared to other airlines, as well as pricey snacks and drinks that must be purchased separately.
Air Premia is also grappling with financial difficulties due to capital erosion. In September 2024, South Korea’s Ministry of Land, Infrastructure and Transport ordered Air Premia to resolve its capital erosion issue by September 2026. Under aviation law, the ministry can issue financial restructuring orders if partial capital erosion—where equity falls below capital stock—persists for over a year. Partial erosion indicates equity is less than capital stock, while full erosion means equity is depleted entirely.
Air Premia’s capital erosion rate was 66.9% in 2022 and worsened to 82.1% in 2023. If the issue persists for two years after the ministry’s order, the airline risks suspension or revocation of its air transport business license. Investment banking sources estimate that at least 50 billion KRW (approximately $37 million USD) is needed to resolve Air Premia’s capital erosion. An industry insider noted, “Air Premia initially gained popularity for offering spacious seats and convenience at lower prices than legacy carriers. However, operating with a bare minimum of aircraft has exposed issues like frequent breakdowns and cancellations.”
By Park Hong-yong