Incheon Airport Corporation Expected to Achieve Q1 Profit Turnaround... "First Success in 3 Years"

Incheon International Airport Corporation forecasted on the 3rd that its quarterly operating profit will turn positive for the first time since the outbreak of the COVID-19 pandemic in 2020.

The corporation expects the operating profit to turn positive in the first quarter of this year. This marks an achievement after 11 quarters since the first quarter of 2020. The corporation explained, "The exact operating profit amount can only be confirmed after the quarterly settlement is completed in mid-April," but added, "Considering the performance in January and February and the estimated passenger numbers for March, we expect to achieve a sufficient surplus."

The corporation cited the rapid recovery of airport users due to the easing of regulations by health authorities and the resumption of visa-free tourism as the reasons behind the faster-than-expected return to profitability. Additionally, it analyzed that ▲the corporation’s cost-cutting efforts ▲maintenance of a stable financial structure ▲and steady investments in preparation for future passenger demand have been key factors.

Since 2020, the corporation’s financial structure has deteriorated sharply due to the impact of COVID-19. While airport operation revenues plummeted, the corporation began incurring operating losses by providing fee reductions amounting to approximately 2.5 trillion KRW for rents and landing fees to preserve the aviation ecosystem.

From 2020 to 2022, a cumulative operating loss of about 1.9 trillion KRW occurred over three years. This recorded the lowest financial performance since the opening of Incheon Airport in 2001. The debt ratio also surged to 92.8%, nearly double that of 2019. To overcome the worsened financial situation, the corporation declared emergency management from 2020 and worked to establish a more efficient management system. It also strived to maintain a stable financial structure despite the deficit situation.

Along with cost-cutting efforts, the corporation continued physical and human investments over the past three years to prepare for a sharp increase in passenger demand. Despite accumulating deficits due to COVID-19, it renovated Terminal 1 to replace aging facilities and prepare for the post-pandemic period. Facility operations and service personnel were maintained at over 90% of the authorized staff to secure a skilled workforce in anticipation of future passenger growth.

Building on the return to profitability, the corporation plans to further improve services by expanding essential facilities such as parking lots and passenger terminals. To prepare for the peak season, expansion work on the terminal’s short-term parking lot was completed, allowing an additional 1,810 vehicles to be accommodated. By the end of this year, expansion of the long-term parking lot will be completed, securing an additional 6,448 parking spaces.

Kim Kyung-wook, President of Incheon International Airport Corporation, said, "Achieving operating profit surplus is the result of efforts to secure financial soundness amid the corporation’s largest deficit crisis since its founding and steady investments looking beyond COVID-19. We will do our best to make 2023 the first year of Incheon International Airport Corporation’s leap forward as a leading public enterprise in the Republic of Korea."

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