Jin Air Reports Operating Loss of 59.6 Billion KRW in Q2... Loss Widens

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyewon] Jin Air announced on the 14th that its operating loss in the second quarter reached 59.6 billion KRW, widening from a loss of 26.6 billion KRW in the same period last year.

During the same period, sales dropped 89% year-on-year to 23.2 billion KRW. The net loss for the period also increased to 59 billion KRW.

Jin Air stated that the poor performance was due to a sharp decline in business volume caused by the COVID-19 pandemic.

However, the company explained that it made efforts to defend its financial position by reducing costs through paid rotational leave and executives' salary returns, expanding domestic routes, operating irregular international flights, and utilizing medium-to-large B777 aircraft for cargo business to supplement revenue.

As a result, Jin Air's cumulative operating loss for the first half of the year (January to June) reached 90.9 billion KRW, turning to a loss compared to a 24.3 billion KRW profit in the same period last year. Sales fell 67% to 167.1 billion KRW, and the net loss for the period was 104.7 billion KRW.

For the second half of this year, the company expects the negative business environment caused by COVID-19 to continue for a prolonged period. Jin Air stated, "We will maintain a management strategy focused on internal stability and a prudent financial policy to prepare for uncertain business conditions," adding, "We will concentrate the capabilities of our executives and employees to proactively respond to external variables and make every effort to overcome the crisis."

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