South Korean LCCs swing to Q3 profit as international travel demand climbs
South Korean low-cost operators T’way Air, Jin Air and Jeju Air continued a profitable streak in their Q3 earnings, helped by strong international travel demand. On a year-on-year basis, the three carriers swung back to the black on the back of a significant increase in revenues. They attributed the improvement to the easing of pandemic restrictions both within South Korea, as well as key markets like China and Japan. For the three months ended 30 September, T’way Air posted an operating profit of W33.5b ($25.6m), improving on the W32.6b loss it posted in the year-ago period, and despite “unfavourable macro-environmental factors”. The carrier’s revenues more than doubled year on year to W345b, as its operations surpassed pre-pandemic levels. T’way carried close to 1.5m passengers systemwide during the quarter, a 26% jump on the passenger volume seen in Q3 2019. The airline’s Southeast Asian and Japanese markets were the largest revenue contributors during the quarter, making up about two-thirds the carrier’s revenue. T’way reported a net profit of W14.3b, against a net loss of W57.6b in the year-ago period. As for Jin Air, it swung to an operating profit of W32.7b, compared to the W17.5b loss in the year. Revenue for the quarter rose 85% year on year to W323b, with international revenues accounting for almost three-quarters of its takings. Like its compatriots, Southeast Asia and Japan markets made up a significant portion of Jin’s revenue. The sister unit of Korean Air reported a net profit of almost W92b, an improvement against the net loss of W101b last year. Jeju Air, meanwhile, reported an operating profit of W44.4b, compared to the W61b loss in the year-ago period. The carrier doubled its quarterly revenue to W437b, outpacing a 55% rise in costs to W350b. In their outlook, the three low-cost carriers expect demand to continue through the year-end, particularly on Southeast Asia routes. Jin Air adds that Japanese flights are expected to remain popular given the weaker Japanese Yen.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-16/unaligned/south-korean-lccs-swing-to-q3-profit-as-international-travel-demand-climbs
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South Korean LCCs swing to Q3 profit as international travel demand climbs
South Korean low-cost operators T’way Air, Jin Air and Jeju Air continued a profitable streak in their Q3 earnings, helped by strong international travel demand. On a year-on-year basis, the three carriers swung back to the black on the back of a significant increase in revenues. They attributed the improvement to the easing of pandemic restrictions both within South Korea, as well as key markets like China and Japan. For the three months ended 30 September, T’way Air posted an operating profit of W33.5b ($25.6m), improving on the W32.6b loss it posted in the year-ago period, and despite “unfavourable macro-environmental factors”. The carrier’s revenues more than doubled year on year to W345b, as its operations surpassed pre-pandemic levels. T’way carried close to 1.5m passengers systemwide during the quarter, a 26% jump on the passenger volume seen in Q3 2019. The airline’s Southeast Asian and Japanese markets were the largest revenue contributors during the quarter, making up about two-thirds the carrier’s revenue. T’way reported a net profit of W14.3b, against a net loss of W57.6b in the year-ago period. As for Jin Air, it swung to an operating profit of W32.7b, compared to the W17.5b loss in the year. Revenue for the quarter rose 85% year on year to W323b, with international revenues accounting for almost three-quarters of its takings. Like its compatriots, Southeast Asia and Japan markets made up a significant portion of Jin’s revenue. The sister unit of Korean Air reported a net profit of almost W92b, an improvement against the net loss of W101b last year. Jeju Air, meanwhile, reported an operating profit of W44.4b, compared to the W61b loss in the year-ago period. The carrier doubled its quarterly revenue to W437b, outpacing a 55% rise in costs to W350b. In their outlook, the three low-cost carriers expect demand to continue through the year-end, particularly on Southeast Asia routes. Jin Air adds that Japanese flights are expected to remain popular given the weaker Japanese Yen.<br/>
