Air Zeta officially launched operations in August 2025, becoming South Korea’s second-largest cargo airline after Korean Air. The new carrier was created from the merger of Air Incheon and the cargo division of Asiana Airlines, forming a company with a fleet of 15 aircraft and around 1,000 employees, set to strengthen its position in international markets. Its establishment is directly linked to the merger process between Korean Air and Asiana Airlines, which was only approved internationally on condition that Asiana’s cargo unit was sold. European and Japanese antitrust authorities imposed this measure to safeguard competition in South Korea’s air freight market.
Air Incheon secured the acquisition of Asiana Cargo in June 2024, beating other domestic contenders such as Jeju Air, Eastar Jet and Air Premia. The deal, valued at 470 billion won (around €285 million), was finalised on 1 August 2025, after nearly two years of negotiations that began in November 2023. To finance the transaction, Air Incheon launched a capital increase of 820 billion won (about €498 million), allocating 470 billion to the acquisition and the remainder to IT integration, operating costs and working capital for the new company.
Air Zeta’s fleet combines four Boeing 737-800SF previously operated by Air Incheon with 10 Boeing 747-400F, four Boeing 747-400BDSF and one Boeing 767-300F inherited from Asiana Cargo. The airline has announced plans to expand capacity further with five Boeing 777F to be introduced from 2026, targeting annual freight volumes of 50 million kilograms. Integration has also meant a major increase in staff, from about 200 to 1,000 employees, including 800 former Asiana Cargo workers. The company is led by Kim Kwan-sik, former CFO of Air Incheon and previously an executive with the Kumho Asiana group.
Air Zeta currently controls around 20% of the domestic market, compared with Korean Air’s 67–70%. This new balance effectively creates a duopoly in South Korea’s air cargo sector, potentially stabilising rates and route planning. Its current network covers 21 routes, combining Air Incheon’s short-haul services to China and Vietnam with Asiana Cargo’s long-haul links to Europe and the Americas. Key destinations include Shanghai, Hong Kong, Frankfurt, Los Angeles and Chicago, along with Milan Malpensa, which serves as the hub for Italian operations.
The international context poses significant challenges. Korean Air reported a 4% drop in cargo revenues in the second quarter of 2025, mainly due to US tariff policies and global trade tensions. To reduce exposure to volatile e-commerce demand, Air Zeta is focusing on diversifying towards high-value cargo such as semiconductors, batteries, solar cells and pharmaceuticals.
The airline is also aiming to improve sustainability and efficiency by introducing new-generation aircraft with better fuel consumption and lower emissions. At the same time, it is making substantial IT investments to integrate the platforms of the two former carriers and ensure operational continuity. Growth plans include the opening of new routes to high-potential markets in Asia and Europe. The entry of Hyundai Glovis as a major shareholder also opens the door to synergies in the automotive and industrial sectors. Challenges remain, however, including tensions with the pilots’ union and the need to reduce operating costs.
