Jeju Air switched to a loss in the first quarter of this year (January to March) due to the repercussions of a passenger aircraft accident that occurred last December.
Jeju Air reported on the 15th that its revenue for the first quarter was 384.7 billion won, a 31% decrease compared to the first quarter of last year. The company recorded an operating loss of 32.6 billion won and a net loss of 32.7 billion won. This marks a shift to losses from an operating profit of 78.9 billion won and a net profit of 47.2 billion won in the first quarter of last year.
Following the tragedy at Muan International Airport in Jeollanam-do on December 29, Jeju Air reduced its number of flights in the first quarter this year by about 14% compared to the first quarter of last year. Jeju Air noted, "We focused on enhancing operational stability through the hiring of maintenance staff, pilots, and operational managers."
The increase in the exchange rate of the won against the U.S. dollar (decrease in won value) also affected profits. According to Jeju Air, the average exchange rate in the first quarter was 1,453 won, a rise of 125 won compared to the first quarter of last year (1,328 won). Jeju Air explained that the rise in exchange rates resulted in increased expenses for aircraft leasing, maintenance, and fuel, which are paid in U.S. dollars.
Jeju Air stated that it expects to achieve an annual reduction of about 14% in operational expenses through the introduction of new aircraft. After purchasing and introducing one B737-8 aircraft in January, the company plans to purchase two additional aircraft for introduction in the first half of the year. The company intends to change its aircraft operation method by returning leased aircraft whose contracts have expired and purchasing new aircraft.