Air Busan Reports 50.5 Billion KRW Operating Loss Last Year, Blames "Oversupply and Sharp Decline in Japanese Demand"

[Asia Economy Reporter Dongwoo Lee] Air Busan announced on the 13th that its sales amounted to 633.2 billion KRW and operating loss was 50.5 billion KRW last year. Compared to the same period last year, sales decreased by 3.1%, and operating profit turned to a loss.

Air Busan cited the causes of poor performance as profitability deterioration due to oversupply, a sharp decline in demand for Japan caused by the Japan trade dispute, increased maintenance costs due to aircraft returns, interest expenses and foreign exchange losses due to changes in aircraft lease accounting standards.

This year, Air Busan plans to introduce a total of four next-generation aircraft to enhance network competitiveness by pioneering exclusive medium-haul routes, and improve profitability through restructuring unprofitable routes and expanding additional services.

An Air Busan official said, “Before the Japan routes could recover, we are facing a very difficult business environment due to the spread of the novel coronavirus (COVID-19),” adding, “We will overcome difficulties through active cost reduction, route restructuring, and efficient aircraft operation.”

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