Jeju Air Turns Profitable in First Half... Achieves Record-High Quarterly Revenue in Q2

Focusing on Sound Management in the Second Half

Fleet Modernization and Profitability Improvements at the Core

Jeju Air announced on August 4th that it achieved its highest-ever quarterly revenue in the second quarter, recording sales of 441.7 billion won.

Sales increased by 40% compared to the same period last year, which was 315.4 billion won. However, due to higher costs from rising oil prices caused by the war in the Middle East and the strong won-dollar exchange rate, the company posted an operating loss of 52.4 billion won.

For the first half of the year, cumulative sales reached 939.9 billion won, marking a 38.1% increase from last year's 680.5 billion won. Operating profit turned positive, reaching 11.9 billion won.

Jeju Air explained that revenue growth was driven by flexible route management in response to changing customer demand, along with the resulting increase in passenger numbers. The company expanded supply primarily on Japanese routes, including the new Incheon-Kobe service. It added more flights on the Gimpo-Jeju route and is also operating a pilot Incheon-Jeju service to capture transfer demand.

As a result, Jeju Air continues to lead the local low-cost carrier (LCC) market in passenger traffic, with over 1 million boardings each month in the first half of the year.

In particular, Jeju Air has been making efforts to reduce fuel costs by increasing the proportion of next-generation fuel-efficient aircraft. In the second quarter, it operated 12 'B737-8' aircraft, representing 27% of its 44 passenger aircraft. Although the number of flights in the first quarter rose by 10% year-on-year, fuel costs decreased to 122.4 billion won. Furthermore, by utilizing stored fuel, the company was able to partially offset total fuel costs for the second quarter, limiting its losses.

Jeju Air plans to maintain its management strategy focused on profitability and financial soundness for the remainder of the year.

In the third quarter, the company will focus on efficient route management. It is increasing capacity on Japanese routes, which have become key profit drivers, along with additional flights on popular seasonal leisure and tourism routes such as to Yanji, China.

Efforts to improve operational fundamentals through fleet modernization are also ongoing. Jeju Air currently operates 13 'B737-8' aircraft and plans to add two more by the end of the year. It recently sold three 'B737-800NG' aircraft before major maintenance costs arose, increasing asset efficiency.

A Jeju Air representative said, "We are establishing a stable growth foundation by strengthening competitiveness on core routes, improving cost efficiency, and optimizing fleet operations. Through effective management practices, we aim to build resilience to adapt flexibly to market conditions and enhance our medium- and long-term competitiveness."

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