Air Busan's Operating Profit Falls on High Oil Prices and Exchange Rate Pressure... Turns to Net Loss

Despite an increase in revenue, Air Busan's profitability deteriorated due to high oil prices and a strong won-dollar exchange rate.

On April 21, Air Busan announced that its revenue for the first quarter of 2026 was 257.7 billion won, up 3.3% from 249.6 billion won in the same period last year.

In contrast, operating profit was 30.4 billion won, a decrease of 24.2% compared to 40.2 billion won in the same period last year.

The company recorded a net loss of 16.1 billion won, turning to a deficit. In the first quarter of last year, Air Busan had reported a net profit of 32.2 billion won.

Air Busan aircraft. Provided by Air Busan

Air Busan evaluated that the introduction of new aircraft at the end of last year, which led to expanded international capacity and new route launches, had a positive effect on its performance.

However, the company explained that overall operating expenses increased, including maintenance and flight operation costs, which weakened profitability. The company also cited the rise in exchange rates as a factor leading to the net loss.

An Air Busan representative stated, "While maintaining a flexible supply operation strategy focused on profitability, we plan to strengthen our growth base by expanding major demand routes to Japan and new routes to China and Southeast Asia. We will also focus on defending profitability and securing financial stability through cost reduction and improved efficiency."

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