Korean Air’s Unused Mileage Liability Climbs Above 3 Trillion Won

Korean Air’s accounting liability for unused frequent-flyer mileage reached 3.1 trillion won, or about $2.3 billion, at the end of the first half of 2026, highlighting a growing pool of customer rewards that the carrier will need to honor with future travel services.

The figure, disclosed by South Korea’s Ministry of Land, Infrastructure and Transport, was 9.7 percent higher than the 2.8 trillion won recorded at the end of last year. Deferred mileage revenue represents the value of flights and related services an airline is expected to provide when customers redeem points they have accumulated but not yet used.

The increase comes as the proportion of passengers traveling on Korean Air award tickets has moved in the opposite direction. Mileage tickets accounted for 11.8 percent of the airline’s passenger traffic in 2023, slipping to 11 percent in 2024 and 10.3 percent in 2025. The total distance traveled by passengers using award tickets also fell 5.1 percent last year, from 8.4 billion kilometers to 8 billion kilometers.

Korean Air said the growing deferred revenue partly reflected increased mileage accumulation as travel demand expanded. It also said some customers had postponed redemptions while waiting for details about how the mileage program would operate after the airline’s integration with Asiana Airlines. The carrier noted that mileage-ticket use still remained above its pre-pandemic level in 2019.

Asiana Airlines separately held 936.1 billion won in deferred mileage revenue at the end of 2025. The combined figure for the two carriers stood at 3.78 trillion won, adding significance to how the integrated airline group will manage outstanding rewards and access to award seats.

The figures have prompted calls for customers to receive more practical opportunities to use the rewards they earned through ticket purchases and affiliated services. Chang Jong-tae, a lawmaker from the Democratic Party of Korea who serves on the National Assembly’s Land, Infrastructure and Transport Committee, said award-ticket availability should be expanded on popular routes and during peak travel periods.

The mileage balance is an accounting obligation rather than cash held for customers, but its continued growth puts attention on redemption capacity. For travelers, the central issue is whether available award inventory keeps pace with the points accumulated. For Korean Air, the challenge is balancing customer access to seats with the financial and operational demands of integrating the two carriers’ loyalty systems.