Image Credits - FlightGlobal
Jeju Air Co., South Korea’s leading low-cost carrier, announced on Tuesday a notable shift from a net loss to a net profit in 2023, reflecting a rebound in travel demand post-pandemic. According to the company’s regulatory filing, Jeju Air reported a net profit of 130.8 billion won (approximately U.S. $98 million) last year, marking a significant improvement compared to the net loss of 173.9 billion won incurred in the previous year.
The surge in sales by 145.4 per cent year-on-year to 1.72 trillion won, coupled with an operating profit of 169.8 billion won, contrasted sharply with the 177.5 billion won operating loss recorded a year earlier. Jeju Air highlighted that its revenue and earnings for 2023 marked unprecedented highs since its establishment in 2006.
The carrier attributed its remarkable performance to its proactive approach of securing short- to mid-haul flight routes, anticipating a surge in travel demand following the relaxation of most COVID-19 restrictions.
Notably, Jeju Air clinched the top spot in terms of air traffic among flag carriers connecting South Korea to key destinations such as Japan, Guam, Saipan, and the Philippines, as per data compiled by the transport ministry.
Looking ahead, Jeju Air disclosed plans to enhance its cost competitiveness by opting to purchase next-generation aircraft instead of leasing them. This strategic move aims to optimize operational efficiency and reduce long-term operating expenses.
Furthermore, Jeju Air emphasized its commitment to further strengthening its market position and expanding its route network, catering to the evolving needs of travellers in the post-pandemic era. The airline’s successful transition from losses to profits underscores its resilience and adaptability amidst challenging market conditions, positioning it as a key player in the aviation industry’s recovery journey.