Quick summary
T’way Air notified cabin crew on April 13, 2026 of voluntary unpaid leave applications beginning in May, the first such measure since August 2024, as escalating US-Iran conflict drives oil prices above $100 per barrel and the Korean won weakens to 1,500 per USD. Korean low-cost carriers including Jin Air, Air Busan, and Air Seoul have entered emergency management mode, cutting routes and capacity as fuel costs surge.
Passengers on T’way Air’s routes to Asia face fuel surcharges rising 20–30% on May bookings. The won’s 8.7% depreciation against the dollar compounds the impact, as Korean airlines purchase jet fuel and lease aircraft in USD.
Korean budget carriers cut capacity as fuel costs spike
T’way Air told workers the unpaid leave program would be optional, describing it as a way to “flexibly support working conditions” as flight schedules shrink. The carrier last used unpaid leave in 2024 before travel demand rebounded and delayed aircraft deliveries arrived.
The move reflects broader cost pressures across Korea’s low-cost carrier sector. Korean Air and Asiana Airlines shifted into emergency management mode in early April, while several budget airlines began trimming schedules this month. Industry sources indicate the cuts target Asia routes where T’way Air and competitors operate most frequencies.
Fuel accounts for roughly 30% of airline operating costs, making even modest oil price swings consequential. Korean Air estimates a $1 increase in oil prices raises annual costs by $30.5 million. A 10 won drop against the dollar adds approximately 55 billion won ($36.9 million) in expenses.
| Route type | March surcharge | April surcharge | Increase |
|---|---|---|---|
| Domestic (Korean Air/Asiana) | ₩7,700 | ₩34,100 | +343% |
| China/Japan (Korean Air) | ₩21,000 | ₩57,000 | +171% |
| Southeast Asia (Korean Air) | ₩39,000 | ₩123,000 | +215% |
| US East Coast (Korean Air) | ₩99,000 | ₩303,000 | +206% |
| Asia routes (Jeju Air) | $9–$22 | $29–$68 | +222% |
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How oil prices and currency swings hit Korean carriers
The airline industry’s vulnerability stems from dollar-denominated expenses. Jet fuel, aircraft leases, and maintenance contracts are priced in USD, meaning Korean carriers face a double squeeze when oil rises and the won weakens simultaneously.
T’way Air implemented cabin crew unpaid leave in August 2024 due to delayed aircraft deliveries and slower-than-expected travel demand recovery. That program lasted three months until new A330-300 aircraft arrived in Q4 2024, restoring schedules. Korean low-cost carriers cut 15% of capacity in 2022 when the won hit 1,440 per dollar following Federal Reserve rate hikes, recovering after Q1 2023.
The current situation differs in scale. Oil prices have climbed more sharply, and the won’s depreciation compounds the impact. One airline industry source noted that when oil prices rise, surcharges dampen demand while operating costs climb as the currency weakens — a feedback loop that squeezes profitability from both sides.
T’way Air’s pilots’ union filed a lawsuit in March 2026 claiming 3 billion won in unpaid wages, signaling broader labor tensions as cost pressures mount. The carrier operates A330-300 widebodies on longer Asia routes like Gimpo–Narita and Gimpo–Taipei, with Boeing 737-800 aircraft handling short-haul flights.
What to do
Korean low-cost carriers are cutting capacity through May as fuel costs remain elevated, making early booking critical for securing seats and avoiding higher surcharges.
- Check current surcharges: Visit twayair.com/booking and search Gimpo–Narita or Incheon–Taipei for May dates before April 20 to see exact fuel surcharge amounts on your route.
- Book within 7 days: Fares on Korean LCC Asia routes are rising weekly as capacity shrinks. Locking in April pricing avoids May surcharge increases of 20–30%.
- Monitor government announcements: Korea’s Ministry of Land, Infrastructure and Transport may announce LCC capacity restrictions or subsidy programs by April 25 at molit.go.kr — these decisions will determine whether surcharges stabilize or climb further.
- Consider full-service alternatives: Korean Air and Asiana Airlines operate 28 and 21 weekly Asia frequencies respectively with Boeing 777-300ER and Airbus A350 aircraft, offering more schedule flexibility despite higher base fares.
- Check European departure options: For travelers originating in Europe, T’way Air’s Paris, Frankfurt, Rome, and Barcelona nonstop flights to Seoul consistently price €600–800 roundtrip, undercutting legacy carriers by 40% even with current surcharges.
Watch: T’way Air’s Q1 2026 earnings release on April 25 will reveal whether operating losses exceed 20 billion won — if so, expect route suspensions similar to the 2024 capacity cuts.
Questions? Answers.
Will T’way Air cancel flights due to unpaid leave?
The unpaid leave program is voluntary and designed to match reduced flight schedules already in place. T’way Air is cutting frequencies rather than canceling entire routes, so existing bookings remain valid but rebooking options may be limited.
How long will fuel surcharges stay this high?
Surcharges track oil prices with a 30-day lag. If Brent crude stabilizes below $105 per barrel through May, current surcharge levels should hold. A climb above $110 would trigger additional increases within 4–6 weeks.
Are other Korean airlines cutting staff?
Korean Air and Asiana Airlines entered emergency management mode but have not announced unpaid leave programs. Low-cost carriers Jin Air, Air Busan, and Air Seoul are trimming schedules but staff reduction measures have not been publicly disclosed.
Can I get a refund if surcharges increase after booking?
Fuel surcharges are typically locked at the time of ticket purchase. If you booked before April, your surcharge remains at the March rate. New bookings after April 13 include the higher surcharge structure.
