Korean LCCs report mixed results in 1H2010
Jin Air, South Korean LCC, stated it reported its first operating profit of USD1.8 million in 1H2010, compared to a loss of USD4.9 million in the previous corresponding period (Yonhap News Agency/JoongAng Daily, 15/16-Jul-2010). Jin Air attributed its turnaround to the surge in air travel. Competitors, Air Busan, also reported an operating profit during the period while the country’s largest LCC, Jeju Air, and newest LCC, Eastar Jet Co, reported losses. Details are as follows:
- Jin Air: USD42.1 million, +91% year-on-year;
- Air Busan: USD46.3 million, n/a;
- Jeju Air: USD55.9 million, +81.3%;
- Eastar Jet: USD42.1 million, n/a;
- Operating profit (loss):
- Jin Air: USD1.8 million, compared to a loss of USD4.9 million in p-c-p;
- Air Busan: USD1.7 million, compared to a loss of USD3.4 million in p-c-p;
- Jeju Air: (USD7.7 million), compared to a loss of USD10.7 million in p-c-p;
- Eastar Jet: (USD2.2 million), na/.
*Based on the conversion rate at USD1 = KRQ1,188
Meanwhile, Jin Air, subsidiary of Korean Air, expects operating profit to reach USD6.7 million in 2010. The carrier also reported passenger traffic on its Gimpo-Jeju sector soared 65%. The LCC was awarded traffic rights to operate from Seoul to the Philippines and Macau in Oct-201 and Nov-2010, respectively, and from Jeju to Shanghai from early-2011.
Jin Air: “We hit a big milestone in the local low-cost carrier industry [in terms of operating profit]. Our goal is to become a major force in Asia by flying more international routes,” Kim Jae-kun, President and CEO. Source: JoongAng Daily, 16-Jul-2010.
Jin Air: “We anticipate that the travel industry will continue to grow throughout 2010,” Jeong Hong-geun, Vice President. Source: JoongAng Daily, 16-Jul-2010.