Modetour Posts 860 Million Won Loss in Q2 Amid Rising Costs Such as Fuel Surcharges

Operating and Net Profit Remain in the Black in First Half

"Focus on Improving Profitability in the Second Half"

Modetour reported a deterioration in profitability in the second quarter of this year, despite higher sales, due to cost pressures such as the high exchange rate and increased fuel surcharges.

On August 14, Modetour announced in a regulatory filing that it recorded a consolidated operating loss of 860 million won in the second quarter, turning to a loss compared to an operating profit of 2.7 billion won in the same period last year. During the same period, sales rose 6.3% to 42.2 billion won.

According to Modetour, "Although second-quarter sales increased year-on-year, we posted an operating loss due to a combination of factors: amortization expenses related to next-generation system development, external cost drivers including exchange rate and fuel surcharge increases, and product operation policies aimed at easing the burden on customers."

However, on a cumulative first-half basis, both operating profit and net profit remained positive. During this period, operating profit was 2 billion won, and net profit was 4.3 billion won.

A Modetour official said, "Recently, reservations for long-haul destinations, where travel costs are relatively high due to geopolitical uncertainties and rising fuel surcharges, have softened somewhat. However, after the reduction of international fuel surcharges, reservation trends for major long-haul regions including Europe and North America—departures after mid-September—are gradually recovering." He added, "In the second half of the year, we plan to closely monitor demand by region, enhance product competitiveness and perceived customer benefits, and focus on improving profitability through efficient cost management."

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