LCC Soars... Jin Air and Jeju Air Achieve 'Record High Performance'

Each Company Records Three Consecutive Quarters of Profit Based on First Half and Second Quarter Standards

LCCs (Low-Cost Carriers) Jin Air and Jeju Air both recorded their highest-ever performance. Jin Air's record is based on the first half of the year, while Jeju Air's is based on the second quarter.

Jin Air announced on the 8th that it posted 259 billion KRW in sales, 17.8 billion KRW in operating profit, and 10.8 billion KRW in net profit for the second quarter. Sales increased by 105% compared to the same period last year (126.4 billion KRW). Operating profit and net profit rose by 32.9 billion KRW and 39.5 billion KRW respectively compared to the previous year’s same period (-15.1 billion KRW and -28.7 billion KRW).

The company’s total sales for the first half reached 611.6 billion KRW, up 215% from 193.9 billion KRW the previous year. Operating profit and net profit were 102.7 billion KRW and 70.8 billion KRW respectively. This is the company’s highest performance for the first half on record.

Jin Air First Half and Second Quarter Performance
[Photo by Jin Air]

Jeju Air also achieved its highest-ever second-quarter performance with sales of 369.8 billion KRW, operating profit of 23.1 billion KRW, and net profit of 19.9 billion KRW. This is the best performance ever for the second quarter, following the record set in the first quarter, and marks three consecutive quarters of profit since turning a profit in the fourth quarter of last year.

For the first half, sales reached 792.1 billion KRW, a 285% increase from 205.9 billion KRW the previous year. This figure is even higher than the pre-COVID-19 first half sales of 702.6 billion KRW in 2019. Operating profit was 93.9 billion KRW, and net profit was 68.1 billion KRW.

Jeju Air Q2 Earnings
Photo by Jeju Air

Both companies attributed these results to strong travel demand following the reopening. Jin Air stated, “The May holidays, a weak yen, and low oil prices drove the strong travel demand,” adding, “We maximized profitability through flexible supply adjustments based on detailed demand forecasting and efficient fleet operation.” Jeju Air explained that it was able to absorb pent-up demand through flexible route operations focused on Japan and Southeast Asia.

Jin Air noted that while an increase in passenger demand is expected during the summer peak season, it is a time when management of external factors such as oil prices and exchange rates is necessary. The company added, “We will aim to increase flights on popular routes, launch new routes, and expand supply from regional airports, and we expect to attract transfer passengers and enhance customer convenience with the move to Incheon Airport Terminal 2.”

Jeju Air plans to introduce next-generation aircraft starting in the second half of the year to strengthen cost competitiveness and will focus on expanding supply and diversifying routes through fleet expansion.

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