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Jeju Air swings to loss in Q2 on increased competition

All News 15:07 August 06, 2019

SEOUL, Aug. 6 (Yonhap) -- Jeju Air Co., South Korea's biggest low-cost carrier, said Tuesday it shifted to a loss in the second quarter due to tougher competition with rivals.

In the April-June quarter, Jeju Air swung to a net loss of 29.48 billion won (US$24 million) from a net profit of 16.83 billion won a year earlier, the company said in a statement.

The airline said more budget carriers have offered increased flights on Asian routes, which had hurt its bottom line. The won's weakness against the U.S. dollar drove up fuel costs as well, it added.

The company also shifted to an operating loss of 27.44 billion won in the second quarter from an operating profit of 11.63 billion won a year ago. Sales rose 11 percent to 312.95 billion won from 283.26 billion won during the same period, it said.

Jeju Air said it will strengthen services on Chinese routes to offset declining travel demand to Japan amid a nationwide anti-Japan campaign following Japan's expanded restrictions on exports to Korea.

It operates 45 B737-800s, composed of 42 chartered ones and three purchased ones. The planes serve six domestic routes and 70 international routes, mainly to Singapore and Southeast Asian countries.

kyongae.choi@yna.co.kr
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