South Korea’s Incheon International Airport, the country’s primary gateway and one of the busiest hubs in Asia, plans to raise passenger service charges for the first time in 23 years, ending a freeze that has kept the fee at $12 since 2002.
Airport officials said the increase is needed as costs rise and duty-free rental income remains weak. The change could affect many Americans who use Incheon as a major transit hub in Asia.
The airport expects 74.8 million passengers this year, exceeding 2019 levels, but revenue is projected at $1.96 billion, slightly below pre-pandemic figures. Operating profit is forecast at $492 million, about half of what it was in 2019.
Despite completing a $3.42 billion expansion of Terminal 2, most gates remain unused due to delayed airline relocations, leading to daily losses of about $430,000.
Labor expenses have also grown, with subsidiary staff increasing from 6,593 in 2016 to 9,990 this year, pushing outsourcing costs from $249 million to $481 million.
Duty-free income has yet to return to pre-pandemic levels. In 2019, it accounted for $771 million, or 39% of revenue.
In 2023, it fell to $437 million, and last year to $487 million. From January to July this year, the figure was $338 million.
Passenger fees at other airports are far higher: $67 at London Heathrow, $43 at Singapore Changi, $30 at Hong Kong Chek Lap Kok, and $21 at Tokyo Narita.
Incheon officials said charges should gradually move to between $28 and $35. Landing fees are also lower, with Incheon charging $2,100 for a Boeing 777-300, compared to $9,410 at Heathrow.
“Passenger fees were set very low when Incheon opened to attract travelers as a hub for Northeast Asia, and they have not been raised for more than 20 years,” an airport official said. “An adjustment is now necessary.”
Critics in South Korea argue the airport should review spending on projects such as a $2.15 billion Terminal 1 renovation and ongoing investments in artificial intelligence before passing costs to airlines and passengers.
