Jeju Air Achieves Record High Sales of 1.9 Trillion Won Last Year... Operating Profit Halved

Operating and Net Profits Plummet Due to High Exchange Rates
"Fleet Modernization to Lower Average Aircraft Age and Reduce Operating Costs"

Jeju Air recorded its highest sales since its establishment last year. However, operating profit was nearly halved compared to the previous year due to the impact of high exchange rates.

B737-8 aircraft introduced by Jeju Air. Provided by Jeju Air

Jeju Air announced on the 10th that it posted provisional consolidated sales of 1.9358 trillion KRW and operating profit of 79.9 billion KRW last year. Sales increased by 12.3% compared to the previous year, achieving the highest performance ever.

However, with the continued high exchange rate trend, operating profit decreased by 52.9% year-on-year to 79.9 billion KRW, and net profit for the period sharply dropped by 83.8% to 21.7 billion KRW. Jeju Air explained that the average exchange rate last year rose by 56 KRW to 1,365 KRW compared to the previous year, increasing costs paid in dollars such as aircraft lease fees, maintenance expenses, and fuel costs.

Since the passenger plane accident at Muan International Airport in December last year, Jeju Air has been focusing on enhancing operational stability by reducing passenger and cargo route supply. The fleet modernization project is also underway. Jeju Air introduced two Boeing B737-8 aircraft at the end of 2023 and added one more at the end of last month. By continuously purchasing new aircraft, the company plans to reduce the average fleet age to under five years by 2030.

Leased aircraft with expired contract periods will be returned. A Jeju Air official said, "Through changes in aircraft operation methods, we will establish a sustainable profit structure and secure overwhelming cost competitiveness," adding, "An annual operating cost reduction of about 14% is expected."