August 06, 2020 13:57
Budget carrier Jeju Air suffered an operating loss of W84.7 billion in the second quarter, it said Wednesday (US$1=W1,189).
The coronavirus outbreak had a devastating effect on earnings, expanding the airline's losses from W24.7 billion in the same period of last year.
The airline posted sales of just W36 billion, down a whopping 88.5 percent as its net loss ballooned to W83.2 billion.
Jeju Air only operates four of its 76 international routes due to the pandemic.
"Flag carriers Korean Air and Asiana Airlines expected a turnaround in the second quarter by increasing revenues from cargo sales, but that's not easy for a low-cost carrier like Jeju Air because its cargo sales are small," an industry insider said. "It'll take a lot more time for the company to get back to normal."
Things could get even worse for Jeju now it has abandoned plans to buy rival budget carrier Eastar Jet. It is uncertain yet whether it could retrieve the W11.95 billion deposit it has already paid.
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