Jeju Air shifts to profit in Q4 on eased travel restrictions

Jeju Air, Korea's biggest low-cost carrier, said Tuesday it shifted to a net profit in the fourth quarter as eased COVID-19 restrictions unleashed pent-up travel demand. The budget carrier swung to a net profit of 17.4b won ($14m) for the three months ended Dec. 31 from a net loss of 53.9b won during the same period of 2021, the company said. The turnaround comes in 15 quarters after posting net losses in the past 14 consecutive quarters since Q2 2019. "The company preemptively resumed flights to major Japanese cities, such as Tokyo, Osaka and Fukuoka, in October when Japan allowed visa-free travel for inbound passengers. The move helped prop up the bottom line," the statement said. In October, Korea removed a COVID-19 PCR test requirement for inbound travelers on the first day of their arrival. Japan lifted the ban on the number of inbound passengers and resumed visa-free travel for visitors from specific countries, including Korea, on Oct. 11. Jeju Air also swung to an operating profit of 18.72b won in the fourth quarter from an operating loss of 67.31b won a year ago. "The company has operated the same fleet of 37 B787-800 aircraft to seek cost efficiency. It helped offset the impact of the won's weakness against the dollar, high jet fuel costs and high interest rates on the earnings results," the statement said. Sales more than tripled to 299.43b won from 87.91b won during the same period. For the whole of 2022, Jeju Air's net losses narrowed to 172.42b won from 272.28b won the previous year.<br/>