Sales hit 441.7b won; operating loss widens to 52.4b won

Fleet modernization, route optimization aimed at cutting costs

A Jejuair Boeing 737-8 aircraft [Jejuair]
A Jejuair Boeing 737-8 aircraft [Jejuair]

Jejuair posted its highest-ever second-quarter sales, but its operating loss widened year on year as high fuel prices and a weak won — both driven by the Middle East war — weighed on results.

The budget carrier said Tuesday its second-quarter sales rose 40 percent from a year earlier to 441.7 billion won ($309 million). Its operating loss came in at 52.4 billion won, up 7.4 billion won from 45 billion won in the same period last year.

For the first half of the year, cumulative sales reached 939.9 billion won, a 38.1 percent increase from 680.5 billion won in the first half of last year. Operating profit swung to 11.9 billion won from an operating loss of 80.7 billion won in the same period last year.

Jejuair attributed the second-quarter sales growth to flexible route management in response to shifting customer demand, which drove higher passenger numbers. The airline expanded capacity on Japan routes to adapt to demand changes, including launching a new Incheon–Kobe service. It also increased flights on the Gimpo–Jeju route and has been running trial operations on the Incheon–Jeju route to capture transit demand.

As a result, Jejuair said it carried more than 1 million passengers every month in the second quarter, maintaining its position as the top low-cost carrier among South Korean airlines by passenger volume.

The airline is also working to cut fuel costs by increasing the share of next-generation, fuel-efficient aircraft in its fleet. As of the second quarter, it operated 12 Boeing 737-8 jets — 27 percent of its 44-aircraft passenger fleet — up sharply from 11.6 percent in the second quarter of 2025.

In the first quarter, flight operations rose 10 percent year on year, yet fuel costs fell to 122.4 billion won from 124.2 billion won in the same period last year. Jejuair also trimmed overall second-quarter fuel expenses by drawing on fuel it had purchased and stored in advance.

Jejuair plans to continue its strategy of focusing on profitability and financial soundness in the second half of the year to navigate an uncertain business environment.

In the third quarter, the airline will concentrate on efficient route operations that can respond flexibly to demand shifts. It is expanding capacity on Japan routes — its core revenue corridors — while also adding flights on routes such as Incheon–Yanji in China to meet rising leisure and tourism demand during the peak summer season.

Fleet modernization will continue as well. Jejuair currently operates 13 Boeing 737-8 next-generation aircraft and plans to add two more by year-end.

The carrier is also adjusting its investment scale to shore up financial stability. It recently sold three Boeing 737-800NG aircraft, advancing its fleet modernization while disposing of older planes before major maintenance costs arise — a move aimed at improving asset efficiency and securing liquidity.

"We are building a stable foundation for growth through stronger competitiveness on core routes, cost efficiency and optimized fleet operations," a Jejuair official said. "In the second half, we will continue our strategy of sound management to strengthen our ability to respond flexibly to market conditions, and on that basis we will keep raising our medium- and long-term competitiveness."


eyre@heraldcorp.com