Jeju Air Reports KRW 449 Billion in 2Q Revenue, Down 26% Year-on-Year

Jeju Air announced on the 14th that its consolidated revenue for the second quarter of this year reached KRW 449 billion, a decrease of approximately 26% compared to the same period last year. The operating loss was reported at KRW 41.9 billion, which is KRW 36.6 billion higher than the operating loss in the same quarter of the previous year.

The company cited several reasons for its poor performance: an increase in the average KRW-USD exchange rate in the second quarter of this year, which led to higher costs for aircraft lease payments and maintenance expenses that are settled in US dollars; a reduction in the number of flights operated, resulting in decreased revenue; and a slowdown in the growth of travel demand.

Since the beginning of this year, Jeju Air has purchased and introduced four B737-8 aircraft, and plans to add two more purchased aircraft by the end of the year to lower the average age of its passenger fleet. The company aims to establish a sustainable profit structure by returning leased aircraft whose contracts have expired and continuing to purchase and introduce new aircraft. Through this operational strategy, Jeju Air expects to reduce annual operating costs by about 14%.

A Jeju Air official stated, "In the second half of this year, we plan to secure cost competitiveness through fleet modernization and establish a sustainable profit structure by changing our operational approach, thereby working toward improving our performance."

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