Record-high Sales and Operating Profit Achieved
Aircraft Acquisition and Route Diversification Planned for This Year
Air Premia recorded its highest-ever sales and operating profit last year, achieving its first annual net profit since its founding.
Air Premia announced on the 17th that, based on separate financial statements, it posted sales of 491.6 billion KRW, operating profit of 40.9 billion KRW, and net profit of 5.9 billion KRW last year.
Sales increased by 31.1% from the previous year (375.1 billion KRW), marking an all-time high. Operating profit grew by 119.9% during the same period, achieving two consecutive years of profitability. The operating profit margin stood at 8.3%.
Despite significant foreign exchange losses due to a sharp rise in exchange rates, Air Premia recorded a net profit of 5.9 billion KRW for the first time since its establishment, achieving the profit target set for last year, which the company said is highly meaningful.
The factors behind the record-breaking performance included ▲ a passenger business focused on profitable long-haul routes ▲ a stable cargo business utilizing belly cargo ▲ securing a hybrid airline revenue structure through efficient fixed cost distribution and operation of ancillary businesses.
Last year, Air Premia transported approximately 428,600 passengers, accounting for 56% of total passengers, on profitable long-haul routes such as those to the Americas. Long-haul passenger sales accounted for 80% of total sales. The cargo business using belly cargo was driven by demand from China-origin e-commerce, accounting for 13.2% of total sales through securing a stable global supply chain.
Air Premia stated that a stable hybrid revenue structure linking passenger, cargo, and ancillary businesses has firmly taken root. Efficient distribution of fixed costs through a single aircraft type helped defend against cost increases caused by high oil prices and rapid exchange rate hikes.
Park Kwang-eun, Air Premia’s Chief Financial Officer, said, "We overcame various challenges such as the global economic recession, high oil prices, and rapid exchange rate surges to achieve annual net profit within four years of commencing operations. This year, we aim to surpass 750 billion KRW in sales through additional aircraft acquisitions and route diversification, aspiring to become a global airline."
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