Jeju Air reported an operating loss of 41.9 billion won in the second quarter of this year. In the second half, the airline plans to secure cost competitiveness through fleet modernization and establish a sustainable profit structure.
Jeju Air noted on the 14th that its operating loss in the second quarter increased by 36.6 billion won compared to the same period last year, totaling 41.9 billion won. However, the net profit, reflecting all revenue, expenses, and taxes, was reported as a loss of 9.9 billion won, which is an improvement from a loss of 17.9 billion won a year ago. Revenue in the second quarter decreased by 26% compared to the same period last year, totaling 332.4 billion won.
Jeju Air explained the poor performance by saying, "The average exchange rate of the Korean won to the U.S. dollar increased in the second quarter, leading to higher expenses for aircraft leasing and maintenance that are paid in dollars, along with a decline in sales due to reduced flight operations and a slowdown in the increase in travel demand."
Jeju Air emphasized that it focused on ensuring reliability through strengthened operational stability in the second quarter. In fact, it reduced the number of flights by approximately 8% compared to the second quarter of last year, while the on-time performance rate improved to 78.9%, a 4.3 percentage point increase from the previous year. The delay rate due to maintenance was 0.44% in the second quarter, down 0.26 percentage points compared to the same period last year.
Jeju Air plans to lower the average age of its passenger planes and secure cost competitiveness by introducing two additional B737-8 aircraft by the end of the year, following the acquisition of four aircraft this year. A representative from Jeju Air stated, "In the future, we plan to return leased aircraft as their contracts expire and adopt a new operational method with newly purchased aircraft, aiming for sustainable profit structures and an expected reduction of approximately 14% in operational expenses."
Based on the newly introduced aircraft, Jeju Air is focusing on efficient aircraft operation and flexible route management by increasing existing routes during the summer peak season and the October holiday period, as well as launching new routes. Following the introduction of new services on the Incheon-Singapore and Busan-Shanghai routes in July, it is expected to begin operations on the Incheon-Guilin route starting October 1.
A representative from Jeju Air said, "In the second half, we plan to secure cost competitiveness through fleet modernization and achieve performance improvement through changes in operational methods for a sustainable profit structure."