 |
Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Jeju Air recorded the highest sales in its history last year, but its operating profit was cut in half due to high exchange rates and fuel prices.
On Monday, Jeju Air announced that its consolidated sales for 2023 amounted to KRW 1.9358 trillion, with an operating profit of KRW 79.9 billion.
Sales increased by 12.3% year-on-year, marking the highest performance since the airline’s founding in 2005. This was driven by a 16.1% increase in international passengers, reaching 8,552,369 last year compared to 7,365,835 in the previous year.
However, operating profit fell by 52.9% to KRW 79.9 billion, while net profit declined by 83.8% to KRW 21.7 billion.
Jeju Air explained that this was due to an increase in costs related to aircraft leases and maintenance, which are paid in U.S. dollars, as the average exchange rate rose by approximately KRW 56 to KRW 1,365. Additionally, the rise in international oil prices led to higher fuel expenses.
Following the passenger plane accident at Muan International Airport last December, Jeju Air has focused on reducing supply in its passenger and cargo routes in the first quarter of this year to enhance operational stability.
The airline is also accelerating its fleet modernization project. On January 31, Jeju Air introduced its third Boeing 737-8 aircraft, aiming to lower the average fleet age to below five years by 2030 to improve safety and efficiency.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
