SEOUL — South Korea’s leading airlines, Korean Air Lines Co. and Asiana Airlines Inc., are sitting on a combined 3.5 trillion won (US$2.58 billion) in unredeemed miles as of June, with travel restrictions from the COVID-19 pandemic prompting extensions in mile expiration dates. This accumulated value represents a slight increase in deferred income for both airlines compared to the previous year.
According to Yonhap News Agency, Korean Air holds 2.52 trillion won in unredeemed miles, while Asiana accounts for 975.8 billion won. The year-over-year growth in unredeemed miles is 2.6 percent for Korean Air and 3.5 percent for Asiana. Historically, both airlines enforced a 10-year expiration policy on miles accrued by travelers, but adjusted their policies during the pandemic to extend these expiration dates by up to three years to accommodate disrupted travel plans.
Industry experts suggest that the airlines are actively promoting the usage of these miles among customers, particularly as Korean Air progresses with its plans to acquire Asiana. This effort is partly to mitigate any financial complexities that could affect the merger process, which has already received regulatory approval from 13 countries. However, completion of the merger awaits final approval from the United States.