Asiana Airlines Inc., South Korea's second-biggest passenger carrier by sales, said Tuesday it will raise fares on its domestic routes to the southern resort island of Jeju by an average of 5 percent next month, marking the first increase in five years.

The fare hike, effective beginning April 18, was attributed to the deteriorating business environment.

"The rate hike was mainly due to the increased use of bullet trains instead of planes, tougher competition among players and higher operating costs," Asiana spokesman Seo Ki-won said.

The company does not have an immediate plan to raise fares on other domestic routes, he said.

In 2016, Asiana shifted to a net profit of 54.29 billion won ($49 million) from a net loss of 139.19 billion won a year earlier, according to a regulatory filing. 

"Increased overseas travel and declines in oil prices helped the company turn around last year," the spokesman said. (Yonhap)