South Korean LCCs see Q3 revenue uplift, though loss-making streak continues

Two South Korean low-cost carriers — T’way Air and Jeju Air — widened their third-quarter operating losses, despite reporting an uptick in revenue. They cited a rise in coronavirus infections in the country during the July-September quarter, among the reasons for their poorer performance. Meanwhile, compatriot Jin Air managed to trim its losses as revenue increase outpaced a rise in costs. For the three months to 30 September, Jin Air was W44.5b ($51.4m) in the red at the operating level. This compares to the W49.2b operating loss it reported in 2020. Revenue for the quarter rose 13% to W60.7b, while costs inched up 2% year on year, to W105b. With South Korea’s international borders still largely shut, domestic flying made up the bulk of Jin Air’s Q3 revenue, at 83%. The carrier flew 1.4m passengers in the quarter, 13% higher year on year, with capacity rising 9% and traffic increasing 14%. As for T’way, it posted an operating loss of W39b, widening the W31.7b loss it reported during the same period in 2020. <br/>