Air Busan Posts 4.5 Billion Won Operating Loss Last Year, Turns to Deficit from Previous Year

Air Busan announced on January 23 that it recorded an annual operating loss of 4.5 billion won last year, turning to a deficit compared to the previous year.

During the same period, revenue decreased by 17.3% to 832.6 billion won, and net loss turned to a deficit of 22.7 billion won.

Air Busan

Last year, Air Busan's performance declined compared to the previous year due to several factors: a reduction in available aircraft caused by an in-flight fire and prolonged outsourced maintenance; intensified competition and resulting fare declines due to increased supply across the airline industry; and ongoing external challenges such as rumors of a major earthquake in Japan and security concerns in Southeast Asia.

Despite the stabilization of international oil prices, the continued high exchange rate led to an increase in foreign currency expenses, such as aircraft-related costs and maintenance fees, which are heavily settled in US dollars, making it difficult to defend the company's performance.

Although Air Busan had expected a cumulative profit for the year despite the challenging business environment, the company explained that unexpected maintenance costs incurred at the end of the year caused a shift to a cumulative deficit.

This year, Air Busan plans to maintain a stable supply system by introducing additional aircraft and returning maintained aircraft to service, thereby normalizing its fleet.

An Air Busan representative stated, "We expect a gradual improvement in performance driven by the recovery in passenger demand, especially on our main routes to Japan and Taiwan. In addition, we plan to develop various charter flights to meet the recovering demand for China routes, in line with the extension of the Korea-China visa-free policy and improving relations between the two countries."