Thanks to Japanese Travel... Jeju Air Achieves Record Quarterly Operating Profit (Comprehensive)

1Q Operating Profit 75.1 Billion KRW... Record Highest Quarterly Earnings
Six Consecutive Quarters of Profit Achieved
Strong Performance in Japan-Led Short and Medium Distance Routes

Jeju Air recorded an operating profit of over 75 billion KRW in the first quarter of this year, achieving the highest quarterly performance in its history.

On the 7th, Jeju Air announced preliminary results showing separate basis sales of 539.2 billion KRW and an operating profit of 75.1 billion KRW for the first quarter of this year. These figures represent increases of 27.7% and 6.2%, respectively, compared to the same period last year. This marks the highest quarterly performance ever, with six consecutive quarters of profit since the fourth quarter of 2022.

Strong demand for medium- and short-haul travel was a key factor. According to the Ministry of Land, Infrastructure and Transport's Aviation Information Portal System, the number of passengers transported on Jeju Air's medium- and short-haul international routes?including Japan, Greater China, Vietnam, the Philippines, Guam/Saipan?reached 18,107,337 in the first quarter of this year, accounting for 83.8% of the total 21,607,700 international passengers during the same period.

In particular, the Japan route recorded 6,205,279 passengers in the first quarter alone, boosted by the weak yen effect. This is a 6% increase compared to the first quarter of 2019, before the COVID-19 pandemic. In line with this, Jeju Air implemented a diversification strategy for its Japan routes, carrying 15.9% (984,506 passengers) of all Korea-Japan route passengers in the first quarter. This is the largest share among the 22 airlines operating on Korea-Japan routes. Additionally, demand was solid on other medium- and short-haul routes such as the Philippines (269,150 passengers) and Guam/Saipan (140,963 passengers).

Jeju Air also explained that its efficient aircraft operation strategy contributed to the results. As of the end of the first quarter this year, Jeju Air's fleet consisted of a total of 42 aircraft (40 passenger planes and 2 cargo-only planes), the same number as in the first quarter of 2019 before COVID-19. This is an increase of 3 aircraft compared to 38 (37 passenger planes and 1 cargo plane) in the same period last year. Despite this, sales increased by 37.8% compared to the first quarter of 2019 and by 27.7% compared to the first quarter of 2023.

A Jeju Air official said, "Through proactive and flexible route operations tailored to strong medium- and short-haul travel demand, we were able to minimize the impact of delayed recovery on China routes," adding, "As China routes are also showing a gradual recovery trend, we will continue to maintain a stable profit structure."