Jeju Air Posts Record Q3 Profits
Korea's leading low-cost carrier Jeju Air posted a record quarter in the third quarter of the year, the company said on Tuesday.
Its sales stood at W266.6 billion between July and September, up 20 percent on-year, while its operating profit increased 5.9 percent to W40.4 billion (US$1=W1,114). Both are the largest ever quarterly figures posted by the company.
The sharp growth is largely attributed to its aggressive route diversification. Jeju Air expanded routes to Japan and Southeast Asian countries to meet soaring demand while reducing the number of flights to China in response to a slump in demand amid a dispute over a Terminal High-Altitude Area Defense battery.
The budget carrier has also benefited from economy of scale as aircraft maintenance costs per unit have declined with additional fleets.
The airline is on pace to have its best year ever, with the year's cumulative operating profits until the third quarter -- W83.9 billion -- already surpassing last year's total -- W58.7 billion.