Air Busan Turns Net Profit in Q2... "Confident in Q3 Performance Rebound"

Despite challenges such as weak demand on Japanese routes and aircraft operation disruptions, Air Busan has succeeded in turning a net profit.

On July 23, Air Busan announced its financial results for the second quarter of 2025, reporting revenue of 171.4 billion KRW, an operating loss of 11.1 billion KRW, and a net profit of 27.7 billion KRW.

Although revenue decreased by 27.2% compared to the same period last year, the company swung to a net profit from a net loss of 12.8 billion KRW. For the first half of the year, revenue was 420.9 billion KRW (down 17.1% year-on-year), operating profit was 29 billion KRW (down 67.4%), and net profit was 59.9 billion KRW (up 502.8%).

The weak performance in the second quarter was due to several factors: a decline in demand for Japanese routes caused by the spread of rumors about a major earthquake in Japan, the heatwave, and the strong yen; aircraft losses resulting from fire damage; and operational disruptions caused by delays in overseas maintenance. However, the company achieved a significant improvement in its debt ratio, which improved by 474 percentage points compared to the end of the previous year, thanks to the proactive issuance of perpetual convertible bonds (CB) and the decline in exchange rates.

Starting in the third quarter, Air Busan plans to improve its performance by capitalizing on the summer peak season. The company will expand supply on popular Southeast Asian routes by resuming the Busan-Cebu route, increasing flights to Kota Kinabalu and Danang, and operating charter flights to Boracay. Air Busan will also focus on enhancing profitability through customized operation strategies tailored to demand changes on each route.

An Air Busan official stated, "Entering the summer peak season and normalizing the fleet will create momentum for performance improvement," adding, "We will focus on earning customer trust with safety as our top priority."

Air Busan A321neoLR aircraft.