Korean Air’s Unused Mileage Liability Tops 3 Trillion Won as Redemption Rate Falls

Korean Air’s accounting liability for unused frequent-flyer mileage exceeded 3 trillion won in the first half of 2026, even as the proportion of passengers using mileage tickets continued to decline, according to data submitted to South Korea’s National Assembly.

The airline’s deferred revenue associated with unredeemed mileage reached 3.1199 trillion won at the end of June. That was an increase of 275.4 billion won, or 9.7 percent, from 2.8445 trillion won at the end of 2025.

Deferred revenue represents the value of services an airline is expected to provide in the future for mileage that customers have earned but not yet used. The growing balance therefore indicates that Korean Air has accumulated a larger obligation to members of its loyalty program.

The figures were provided by the Ministry of Land, Infrastructure and Transport to Democratic Party lawmaker Jang Jong-tae, a member of the National Assembly’s Land, Infrastructure and Transport Committee. Jang called for the airline to expand access to reward seats on routes and during travel periods that draw strong consumer demand.

The increase in outstanding mileage came alongside a continued fall in mileage-ticket use. Mileage bookings accounted for 10.3 percent of Korean Air’s total passenger traffic in 2025, down from 11 percent in 2024 and 11.8 percent in 2023. The total distance traveled by passengers using mileage tickets also fell 5.1 percent last year, to 8.006 billion kilometers from 8.435 billion kilometers a year earlier.

Korean Air said stronger travel demand had increased mileage accrual. It also said some members may be delaying redemption while waiting to see how the loyalty program will operate following the airline’s integration with Asiana Airlines. The company added that mileage-ticket use remained above its 2019 level, before the COVID-19 pandemic disrupted international travel.

Asiana’s deferred revenue from unused mileage stood at 936.1 billion won at the end of 2025. At that point, the combined amount recorded by the two carriers reached 3.7806 trillion won.

The figures put renewed attention on the practical availability of reward seats as Korean Air works through its integration with Asiana. The issue affects both consumers seeking to use benefits accumulated through flights and partner services and the merged airline group’s management of a substantial long-term service obligation.