South Korean LCCs swing to first post-pandemic profit

South Korean low-cost operators Jeju Air and T’way Air swung to their first annual profit since the Covid-19 pandemic, helped by strong demand on Japan and Southeast Asia operations. Both carriers also reported record revenues for the year to 31 December 2023, as efforts to diversify operations – Jeju Air with an increased focus on cargo and T’way with medium- to long-haul operations – pay off. Jeju Air reported a full-year operating profit of W170b ($128m), compared to the W178b loss in the year-ago period. The figure is its highest-ever operating profit in its 18-year history, and about 68% higher than its previous record profit in 2017. Full-year revenue stood at W1.72t – more than double than 2022 – as passenger travel demand remained robust through the year. The airline introduced two new aircraft in the final quarter of 2023, helping boost capacity through the year-end peak travel period. Jeju also notes a steady increase in cargo revenue, with the introduction of dedicated freighters to its fleet. The airline’s fledgling cargo business now has two 737 freighters in it fleet, and is hoping to grow its cargo operations in the near term. As for T’way, it recorded an annual operating profit of W138b, swinging from the W105b loss in 2022. T’way saw its revenue for the year more than double to W1.35t, amid “rapid increase in demand” for its short-haul operations to Japan and Southeast Asia. The airline also notes demand for medium-haul flights - to Sydney and Singapore - is growing. <br/>