South Korean low-cost operators narrow Q3 losses as international traffic soars

Three South Korean low-cost airlines cut their red ink in their third-quarter earnings, as passenger traffic continues to recover with the country’s easing of entry restrictions. For the three months to 30 September, Jin Air, Jeju Air and T’way Air also reported a significant upswing in revenues – especially from international passenger travel. Jin Air reported a quarterly operating loss of W17.5b ($13.2m), narrowing the W44.5b loss in the year-ago period. The sister unit of Korean Air saw its revenue more than double year on year, to W175 billion, of which international passenger revenue made up about 34%, up from 6% in the year-ago period. The airline saw a 29% rise in passenger numbers for the quarter to 1.8m. Capacity more than doubled against 2021 levels. International traffic, in particular, saw the strongest growth, with RPKs seeing an increase of 37 times year on year. The increase in operations led to a 83% jump in costs to W192 billion. Like many other carriers, Jin Air saw a significant portion of costs go to fuel, at 32%. It is a higher proportion than in 2021, when fuel accounted for just 17% of expenses. As for Jeju Air, it was W60.6b in the red, an improvement on the W90.5b operating loss last year. Revenue rose nearly three-fold year on year to W194b, led by a significant uplift in international travel revenue. The airline carried about 2.2m passengers during the quarter, a 38% increase year on year. Like its compatriots, the largest increase came from international travel, with RPKs climbing nearly fifty-fold. Meanwhile, T’way Air reported a W32.6b operating loss, against a W39b loss in the year-ago period.<br/>