Korean Air announced that they are suspending its thrice weekly service between Seoul Incheon and São Paulo Guarulhos, via Los Angeles International, effective Sept. 26, citing low passenger demand. The cancellations will only go into effect after the Rio de Janeiro Olympic Games.
The suspension is in response to a dramatic drop in revenues as Brazil’s economy continues to circle the drain. Korean media has reported that the route generates US$21.5 million in annual losses for the carrier.
Korean Air said it will increase cooperation with U.S.-based carriers flying to Brazil in a bid to reduce the impact of its suspension. The carrier added that it is open to resuming the Brazil flights in the future, and will closely follow market conditions.
Brazil is not the only country taking a hit. The carrier is also reducing the frequency of flights between Incheon and Jakarta from ten to seven flights weekly from September. This reduction is also due to low demand.