In an abrupt announcement last week, Jeju Air notified its customers that flights between Incheon and Guam past October have been suspended and it’s undetermined when flights will resume. 

Korean media outlets report the airline plans to suspend operations in the Guam-Incheon route until March 28 of next year. 

It's the first suspension of the Incheon-Guam route in 13 years, aside from the COVID-19 pandemic. 

The move comes amid market instability, especially due to Korean Air’s acquisition of Asiana Airlines, causing mixed reaction from GVB President and CEO Regine Biscoe Lee.

“We’re disappointed that they decided to pause service, but we understand. There’s a lot of dynamic competition going on in the market right now, especially because of the merger between Korean Air and Asiana (Airlines). That also involves three of their LCC’s– their low cost carriers– Air Busan, Air Seoul and Jin Air. So lots of change and lots of increased supply coming into the market, which is a good thing for people coming to Guam and travelers who want to come to Guam,” said Biscoe Lee. 

While Jeju Air is suspending flights, other airlines under the mega carrier have recently expanded seat capacity to Guam. 

GVB says they’re seeing a “fast paced rebound” in Korean arrivals, from 39,000 monthly seat capacity in June to more than 60,000 in August, a surge officials attribute to airline incentives. 

“It’s really optimistic and I’m looking forward to increased seat capacity. But then we have to do our job on the back end, both in Korea and here in Guam to make sure that we have a good marketing push to make sure those seats are filled,” added Biscoe Lee. 

However, GVB said last week Guam could see fewer arrivals than the projected one million mark upon a revised forecast for the upcoming fiscal year. 

This after senators only appropriated $10 million out of their $11.1 million request to fund airline incentives in the budget bill. 

“First I just want to thank them so much for their support and agreeing to fund us, even if it's a $10 million mark. We’re able to put significant programs together and really go after this opportunity, and make sure it's an opportunity that spreads in all aspects of our economy and island,” said Biscoe Lee. 

Biscoe Lee emphasizes that while GVB is decreasing their forecast, their target still remains the same. 

“We’re still pushing really hard for that, to hit that 1 million visitor mark. It might be a little bit of a different mix, depending on the carriers that are coming in and our incentive programs and how they are received. But it’s kind of a wait and see game and this point. Again, the budget still has not been approved. It’s been passed in the legislature, but we’re still waiting for the final action,” she said. 

The Governor has until Friday, Sept. 5 to take action on the budget bill.