Air Busan Reports Q1 Sales of 249.6 Billion KRW and Operating Profit of 40.2 Billion KRW

Provisional Net Profit of 32.2 Billion KRW
Maximizing Operational Efficiency of Available Aircraft
Plans for Flexible Route Management

Air Busan (CEO Jung Byungseop) announced through a provisional earnings disclosure on April 23 that it recorded sales of 249.6 billion KRW, operating profit of 40.2 billion KRW, and net profit of 32.2 billion KRW in the first quarter of this year.

Sales decreased by 8.3% compared to the same period last year, and operating profit fell by 43.4% year-on-year. The decline in both sales and operating profit was largely attributable to aircraft losses resulting from an aircraft fire in January this year. An Air Busan official explained that, in particular, the company had to significantly revise its business plan due to reduced operations caused by a decrease in available aircraft during January and February, when air travel demand is typically concentrated, which had a major impact on the results.

External factors, such as the prolonged period of high exchange rates, also continued to have a negative impact. The dollar exchange rate, which remained in the 1,340 KRW range at the end of March last year, surged to the 1,460 KRW range by the end of March this year, serving as a key factor in increasing operating costs such as fuel and maintenance expenses.

Air Busan plans to maximize the operational efficiency of its currently available aircraft with safety as its top priority and to enhance profitability through flexible route management, including targeting seasonal demand. Starting April 22, Air Busan resumed its Busan-Ulaanbaatar route, and from April 27, it will increase the frequency of the Busan-Yanji route from three times a week to six times a week, continuing to expand supply in line with demand trends.

An Air Busan official stated, "We expect intensified competition in the aviation market and ongoing uncertainty in the external environment," adding, "We will strive to maintain our competitive edge on our main routes to Japan, while also responding swiftly to demand trends and market changes on routes to China, Greater China, and Southeast Asia."