SEOUL — Jeju Air Co., South Korea’s leading budget airline, announced a return to profitability in 2023, driven by a robust rebound in travel demand following the pandemic. The company disclosed on Tuesday that its net profit for the year reached 130.8 billion won ($98 million), marking a significant recovery from a net loss of 173.9 billion won in the previous year, as per a regulatory filing.
According to Yonhap News Agency, sales surged by 145.4 percent year-on-year to 1.72 trillion won, with operating profit at 169.8 billion won, reversing from an operating loss of 177.5 billion won a year earlier. Jeju Air attributed this remarkable performance to a strategic emphasis on securing short- to mid-haul routes in anticipation of the resurgence in travel demand, post the lifting of COVID-19 restrictions. The airline noted that 2023 revenues and earnings were the highest since its inception in 2006.
Jeju Air also led in air traffic among South Korean flag carriers to destinations such as Japan, Guam, Saipan, and the Philippines last year, based on data from the transport ministry. Moving forward, the airline plans to enhance its cost competitiveness through the acquisition of next-generation aircraft, transitioning away from leasing.