Like its compatriots, Jeju Air saw demand on Japanese routes fall but managed to grow its network in other regions during the third quarter.
South Korean budget carrier Jeju Air saw demand on Japanese routes fall, like its compatriots, but managed to grow its network in other regions during the third quarter.
From June to September, passenger revenues from Japan routes declined 24.2% year-on-year as a diplomatic row between Tokyo and Seoul simmered in the background.
On the upside, the carrier’s revenues from China and Oceania grew more than 20%, while turnover in Russia and Southeast Asia expanded 10-15%.
As such, the budget carrier managed to grow its third-quarter revenue 4.9% to W367 billion ($315 million). But much of the airline’s revenues were eroded by cost of goods sold gaining 24.5%, driven by a 19% jump in fuel expenses.
For the quarter ended 30 September, the carrier reported a W18.5 billion operating loss, compared to a W38.1 billion operating profit in 2018.
Net loss came in at W12.3 billion, versus a W31.2 billion net profit in the year-ago period.
Having added 10 new aircraft during the quarter, Jeju increased flight operations 19% and saw passenger numbers grow 15%.
International expansion drove a 28% year-on-year capacity increase, as measured in ASK. But since traffic was up only 25%, passenger load factor declined by 3.4 percentage points to 86.2%.
The carrier had 46 aircraft at the end of September, and intends to return one in December.
Cirium fleets data shows that Jeju operates an all-Boeing 737NG fleet, with 40 737 Max jets on order and options for another 10.