KUALA LUMPUR (July 28): Korean Air Lines Co Ltd, which plans to complete its merger with Asiana Airlines on Dec 17, reported stronger passenger traffic on its Kuala Lumpur-Seoul route in the first half of 2026 (1H2026) as travellers increasingly avoid connecting through Middle Eastern hubs disrupted by the US-Iran conflict.

The South Korean flag carrier flew 86,507 passengers between KL and Seoul in 1H2026, up 13% from a year earlier. Load factor rose to 86% from 76% in the same period last year, despite higher airfares and fuel surcharges stemming from disruptions caused by the Iran war.

Korean Air currently operates daily KL-Seoul services using an Airbus A330-300.

"The growth is in tandem with increasing traffic from Malaysia to Seoul and onward to the US," Korean Air regional manager for Malaysia, Brunei and Bangladesh Samuel Kang Sang Bum said at a news conference here on Tuesday.

The airline serves 20 US destinations, including Seattle, San Francisco and Los Angeles, via its Seoul Incheon hub.

Korean Air is also targeting Malaysian travellers bound for secondary Japanese cities by leveraging its network from Seoul.

"Via Seoul's Incheon, we can link you to smaller cities in Japan such as Sapporo, Aomori and Komatsu. This year, we expect to work with travel agencies here to launch new travel products to these destinations, with travellers spending two to three days in Seoul on the return journey," Kang said.

The airline has long-term plans to expand capacity on the KL-Seoul route, although Kang said its immediate priority is completing the integration with Asiana Airlines.

"We have long-term expansion options for the route, including deploying larger aircraft or increasing flight frequency. But we will focus on the Asiana Airlines merger first. After that, we may start by expanding aircraft size from the current A330-300 before discussing additional frequencies," he said.

Korean Air is currently finalising its summer 2027 schedule, which begins on March 27 next year.

"We have an ongoing assessment of market demand. We also have to consider aircraft delivery schedules. I'm expecting the planning to be completed very soon," Kang said.

On the cargo business, Korean Air general manager of the KL cargo branch Lee Man Seok said the airline operates six weekly freighter flights from Penang using Boeing 747-400 or 777 freighters, in addition to two weekly freighter flights from KL, which is supplemented by the daily passenger belly-hold capacity.

Freighter services from Penang primarily transport semiconductors, servers and medical equipment, while cargo from Kuala Lumpur mainly consists of aerospace components, electrical and electronic products and solar panels.

Asked about the possibility of resuming passenger flights between Seoul and Penang, Kang said the airline continues to assess demand following the Asiana Airlines integration.

"We're always monitoring demand to Malaysia. This is a very exciting time for us because of the Korean Air-Asiana Airlines integration. It gives us an opportunity to review more potential routes," he added.

Korean Air previously operated Seoul-Penang passenger services in 2004 but suspended the route three years later because of weak demand.

The airline employs nearly 50 people in Malaysia across its passenger and cargo operations.

Korean Air recorded an increase in bookings to regional destinations during the early months of the Middle East conflict, although demand has since normalised.

"With the geopolitical developments, we saw an uptick in our regional reservations, particularly for Australia and New Zealand operations, in the first few months of the conflict. In recent weeks, though, things have normalised," Korean Air communications manager Kenneth Lee Kang-Hee said.

Lee said the airline's fuel supply remains stable after diversifying procurement channels.

"We have also raised our jet fuel surcharge, which is reviewed monthly, but it has not been sufficient to offset the higher costs borne by airlines due to volatile fuel prices," he added.

Lee said Malaysia has been a key market for the airline's international expansion. Korean Air launched passenger and cargo services to KL in 1984, introduced dedicated cargo freighter services to Penang in 1993, and established its global service centre in Cyberjaya, Selangor in 2012.

Meanwhile, he described the acquisition of Asiana Airlines as a major milestone for the company. First announced in 2020, the merger between Korean Air and Asiana Airlines was pushed forward as part of a government-led restructuring of the aviation industry following the Covid-19 pandemic. Under the merger, Korean Air will take over all of Asiana Airlines’ assets, liabilities, rights and obligations.

"Our shareholder meeting is scheduled for August, and we remain on track to officially launch the integrated airline on Dec 17. We've already co-located our teams worldwide and are finalising operational specifications, IT integration and loyalty programme alignment,” Lee said.

Following the integration, the combined airline will operate about 230 aircraft by year-end and serve more than 120 international destinations, including KL.

Korean Air currently operates 165 aircraft, comprising 142 passenger aircraft and 23 dedicated freighters. Asiana operates 68 aircraft.

Lee said the airline aims to expand its fleet to 290 aircraft by 2036, although delivery delays across the global aerospace supply chain remain a constraint.

"We've invested well ahead of the curve and currently have an order book of about 260 next-generation aircraft," he said. "Across the group, we're on track to receive about 30 aircraft by the end of next year."

Korean Air currently serves 116 cities in 39 countries. Following the December integration, Lee said the combined carrier will rank among the world's top 10 network airlines, operating more than 120 international routes.

"The key to this network synergy is schedule optimisation. By strategically spreading out overlapping flight times, we will offer travellers better flight options throughout the day while maximising connection opportunities for passengers transiting across Asia, Europe and North America," Lee said.

Korean Air’s operating profit in 1H2026 rose 4% year-on-year to 778.7 billion won, but net profit fell by three quarters to 145.4 billion won. Revenue in the same period was up 20% y-o-y, reaching 9.5 trillion won.