Korean Air's unused mileage deferred revenue surpassed 3 trillion won in the first half of this year, while the ratio of mileage ticket usage dropped for the second consecutive year.

According to Representative Chang Jong-tae of the Democratic Party of Korea, a member of the National Assembly's Land, Infrastructure and Transport Committee, Korean Air's mileage deferred revenue stood at 3.1199 trillion won at the end of the first half of this year.

This marks an increase of 275.4 billion won, or 9.7%, from 2.8445 trillion won at the end of last year.

Mileage deferred revenue is an accounting reflection of the service obligations that an airline must fulfill in the future regarding the mileage that customers have not yet used.

Asiana Airlines' mileage deferred revenue at the end of last year was 936.1 billion won, bringing the combined deferred revenue of the two airlines to 3.7806 trillion won at the time.

On the other hand, performance figures for using mileage to purchase airline tickets declined.

The proportion of mileage ticket usage in Korean Air's total passenger transportation performance fell from 11.8% in 2023 to 11% in 2024, and further to 10.3% last year, declining for two straight years.

The total travel distance of passengers using mileage tickets last year also decreased by 5.1% to 8.006 billion kilometers from 8.435 billion kilometers the previous year.

In response, Korean Air explained that the increase in deferred revenue was influenced by rising mileage accumulations driven by growing travel demand, as well as members postponing their mileage usage to monitor operational plans following the integration with Asiana Airlines.

The airline also stated that its mileage ticket usage performance remains higher than the level seen in 2019, prior to the COVID-19 pandemic.

Representative Chang Jong-tae pointed out that "since mileage is a benefit accumulated by customers through purchasing tickets and using partner services, it is important that they can actually use it," adding that "opportunities to use bonus tickets should be expanded during periods and on routes with high consumer demand."

(Photo: Yonhap News)