Incheon International Airport Corp. is set to post an annual deficit of over 430 billion ($ 363 million) won this year, according to its latest projection Monday.

As things stand in August, the airport is on course to be in the red this year, marking the first time in 17 years since 2003.

The projection comes following a sharp drop in the number of flights and revenue during the first half of 2020, which saw its previous projected deficit grow over time since the first quarter.

“The projected deficit has grown due to the rent reductions provided to duty-free businesses,” one IIAC official said.

Last week, the government announced plans to extend its business support scheme for the aviation industry to December, until which facility fees and rents will be reduced, contributing to the airport’s growing deficit this year.

“All options are being mulled to cut down spending such as raising airport fees or staff going on leave, but nothing has been decided as yet,” another official said.

By Yim Hyun-su (hyunsu@heraldcorp.com)