Jin Air Q1 Operating Profit Down 40.8%... "Impact of Intensified Competition and High Exchange Rates"

"Responding to Market Volatility Through Route Expansion"

Jin Air announced on May 8 that its operating profit for the first quarter of this year was provisionally tallied at 58.3 billion KRW, a decrease of 40.8% compared to the same period last year.

Jin Air B737-800. Provided by Jin Air

During the same period, revenue declined by 2.9% to 417.8 billion KRW, and net profit dropped by 33.1% to 45.7 billion KRW.

The company explained that its performance deteriorated due to a challenging business environment, citing intensified competition resulting from increased supply and higher operating costs caused by the rise in exchange rates as independent factors.

However, Jin Air added that it was able to mitigate the decline in revenue through detailed demand analysis and efficient aircraft operations, achieving an operating profit for ten consecutive quarters since the fourth quarter of 2022.

Jin Air also projected that in the second quarter of this year, volatility in oil prices and exchange rates would likely persist due to ongoing uncertainty in the international landscape stemming from trade conflicts.

In response, the company plans to expand its revenue base by increasing the number of routes, such as launching the Incheon-Ishigakijima route (April 3), resuming the Incheon-Qingdao route (May 30), and introducing the Busan-Ulaanbaatar route (May 22). Jin Air intends to proactively and quickly respond to market volatility through flexible supply and overseas market development.

Additionally, Jin Air stated, "We will prioritize safe operations above all else and focus our efforts on the launch of an integrated low-cost carrier (LCC) with Air Busan and Air Seoul."