Firefighting officials work near the wreckage of a Jeju Air passenger jet that crashed in a tragic accident at Muan International Airport in South Jeolla Province, in this photo taken Jan. 13. Yonhap

Jeju Air's leadership in the nation's budget carrier industry is being threatened by the upcoming convergence of Jin Air and the possible merger of T'way Air and Air Premia, according to data and industry officials, Friday.

Jeju Air had maintained its position as a top low-cost carrier (LCC) in terms of annual sales and market share.

However, the carrier will soon yield the spot to other emerging LCCs amid a drastic industrial upheaval triggered by Jin Air's integration with Air Busan and Air Seoul. The combination of the three budget carriers comes as a result of Korean Air's long-delayed takeover of Asiana Airlines which was finalized in December. The three LCCs are affiliates of the two full-service carriers.

According to data from the Ministry of Land, Infrastructure and Transport, the number of international air travelers on Jeju Air topped the list among local LCCs with 8.55 million in 2024.

However, the combination of Jin Air, Air Busan and Air Seoul came in at 12.86 million during the same period. The three LCCs will be integrated under Jin Air for the next couple of years and rise to become a single entity as the nation's most influential LCC.

The converged Jin Air will become the nation's second-most-influential international flight operator with a market share of 21 percent. Meanwhile, the combined market share of Korean Air and Asiana Airlines will reach 48.5 percent.

The position of Jeju Air is also sandwiched by escalating threats from two other rival LCCs, T'way Air and Air Premia, as chances are growing for their merger.

According to Sono Hospitality Group, the hotel and resort chain operator plans to acquire management rights for the two LCCs and merge them later to bolster their competitiveness and launch a new LCC.

The two LCCs' combined number of international air travelers last year came in at 7.34 million, with a margin of some 1.2 million from Jeju Air. If they succeed in generating synergy in terms of their in-flight services and overall operation following the merger, expectations are they will pose a bigger threat to Jeju Air.

Rumors suggest that Jeju Air may acquire Eastar Jet to brace for the escalating competition, but it appears very tough for it to push ahead with the bid, as it has had to focus on handling the aftermath of the tragic plane crash late last month.

"Jeju Air will have to come up with specific strategies not to lose its market share to the converged rival carriers, but the airline cannot push for it for the time being, as it has to place a top priority on restoring its tainted brand image and recover trust from customers after the latest tragic accident," an official from the aviation industry said.