Jeju Air Posts 1.57 Trillion Won in Revenue Last Year, Down 18.4%

Impact of Muan Airport Passenger Aircraft Accident and Strong Won-Dollar Exchange Rate

Jeju Air announced on February 9 that, on a consolidated basis, its revenue last year was tentatively tallied at 1.5799 trillion won, down 18.4% from a year earlier. Due to the impact of last year’s accident and various internal and external headwinds, including a strong dollar-won exchange rate and intensifying competition, the company posted a loss for the first time in three years.

The annual operating loss came to 110.9 billion won. This marked a sharp deterioration from the previous year, when Jeju Air recorded 79.9 billion won in operating profit, and resulted in a swing to an operating loss. It is the first time in three years that Jeju Air has posted a full-year loss, since 2022 when the effects of COVID-19 were still ongoing.

After the passenger aircraft accident that occurred at Muan International Airport in December 2024, Jeju Air reduced capacity on its passenger and cargo routes in the first quarter of last year to enhance flight safety, which led to lower revenue.

In addition, the rise in the won-dollar exchange rate increased dollar-denominated costs such as aircraft lease payments and maintenance expenses, and the cutthroat competition in the air transport market further eroded profitability. These factors together contributed to the weak earnings.

However, Jeju Air explained that its performance has been rebounding since the end of last year. In the fourth quarter of last year, the company posted revenue of 474.6 billion won and operating profit of 18.6 billion won.

Jeju Air cited, as a driver of its improved fourth-quarter results, the structural improvement achieved by increasing the share of next-generation, fuel-efficient aircraft such as the B737-8 in its fleet. The company’s cumulative fuel costs for the first through third quarters of last year were approximately 19% lower than in the same period a year earlier.