Double Hardship of 'Management Sanctions and Japan Boycott'... Jin Air Reports 49.1 Billion KRW Operating Loss in 2019

[Asia Economy Reporter Yu Je-hoon] Jin Air announced on the 3rd that it recorded an operating loss of 49.1 billion KRW last year, marking a turnaround to a deficit compared to the previous year. During the same period, sales were reported to have decreased by approximately 9.9% to 910.2 billion KRW.

This 'negative growth' of Jin Air is interpreted as the result of a combination of factors, including management sanctions by the Ministry of Land, Infrastructure and Transport triggered by the water cup power abuse incident, and a decline in demand for Japan routes due to the boycott of travel to Japan.

Jin Air explained, "The operating environment deteriorated due to a supply-demand imbalance caused by a slowdown in travel demand despite increased competitive supply, the Japan boycott, and the Hong Kong situation. Competition intensified due to a focus on routes outside the Japan region, and profitability also declined." Additionally, Jin Air added, "The continuation of management sanctions by the Ministry of Land, Infrastructure and Transport has also caused an inefficient management environment, restricting the launch of new routes and operation of charter flights."

Jin Air plans to continue discussions with the Ministry of Land, Infrastructure and Transport regarding the lifting of sanctions while pursuing a route operation strategy focused on profitability, as domestic and international uncertainties remain this year as well.

A Jin Air official stated, "Uncertainties such as the novel coronavirus infection (Wuhan pneumonia), sluggish demand for travel to Japan, and supply-demand imbalance are expected to continue this year. We will strive to improve performance through a profitability-centered route operation strategy and expansion of overseas sales proportion, and continue consultations with the Ministry of Land, Infrastructure and Transport for the prompt normalization of management."

This content was produced with the assistance of AI translation services.