Reduction in Flight Numbers, Increased Safety, and Rising Costs Due to Exchange Rate, “Jeju Air reported an operating loss of 32.6 billion KRW on a consolidated basis in the first quarter, switching to a loss compared to last year,” it announced on the 15th.
“Sales also decreased by 171.2 billion KRW compared to the 555.9 billion KRW in the first quarter last year.”
Jeju Airplane [Photo=Jeju Air]
In the first quarter this year, Jeju Air reduced its flight numbers by approximately 14% compared to the same period last year and focused on enhancing operational safety through the recruitment of maintenance technicians, pilots, and flight operators.
The average KRW-USD exchange rate in the first quarter this year was 1,453 KRW, an increase of 125 KRW compared to 1,328 KRW in the same period last year, which led to increased costs related to aircraft leasing, maintenance, and fuel costs, all paid in dollars.
Jeju Air plans to improve cost competitiveness by lowering the average age of passenger aircraft, following the purchase of one B737-8 aircraft in January, with plans to purchase and introduce two more aircraft in the first half of the year.
Aircraft with expired lease contracts will be returned, and new aircraft will be purchased and introduced with an expected annual operational cost reduction of approximately 14%.
Jeju Air plans to launch a new Incheon-Hakodate route on June 5th and expand seat availability on Japan routes by increasing flights on the Incheon-Fukuoka/Hiroshima routes and the Busan-Tokyo (Narita)/Fukuoka routes. They also plan to strengthen route competitiveness with new flights on the Incheon-Singapore route and resume operations on the Jeju-Xian/Macau/Bangkok routes.