Jeju Air recorded its highest revenue ever last year. Due to the increase in the exchange rate against the U.S. dollar (decline in the value of the won), operating profit decreased by over 50%.
Jeju Air noted on the 10th that revenues for 2024 amounted to 1.9358 trillion won, a 12.3% increase compared to the previous year. During the same period, operating profit was 79.9 billion won, down 52.9%, and net profit was 21.7 billion won, down 83.8%.
Regarding the decrease in operating profit and net profit, Jeju Air explained, "The average exchange rate last year reached 1,365 won, which is 56 won higher than in 2023, resulting in increased expenses such as aircraft lease fees, maintenance costs, and fuel expenses which are settled in dollars due to the continued high exchange rate."
Jeju Air announced its policy to accelerate the fleet modernization project to establish a foundation for sustainable growth. On the 31st of last month, Jeju Air introduced one Boeing B737-8 aircraft.
Jeju Air stated, "By introducing new aircraft, we expect to reduce the average age of passenger aircraft while securing overwhelming cost competitiveness, and anticipate an annual operating expense reduction of approximately 14% by returning leased aircraft whose contracts have expired and purchasing new aircraft."
The impact of the passenger aircraft disaster that occurred at Muan International Airport last December is expected to be reflected in this year's first-quarter results. Jeju Air suspended 1,908 flights until the end of March to ensure operational stability following the disaster.