Jeju Air net profit rises 10 percent in second quarter

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Jeju Air net profit rises 10 percent in second quarter

Jeju Air, Korea’s biggest low-cost carrier by sales, said Tuesday its second-quarter net profit rose 10 percent from a year earlier, helped by oil and currency hedging plans.

Net profit for the three-month period that ended in June climbed to 16.83 billion won ($15 million) from 15.27 billion won a year earlier, the company said in a regulatory filing.

“The company has hedged on oil prices and major settlement currencies due to its heavy exposure to volatility. The move helped it secure a certain level of profitability in the past quarter,” the airline said in a statement.

But operating profits fell 28 percent to 11.63 billion won in the April through June period from 16.18 billion won a year ago. Sales were up 24 percent to 283.26 billion won from 228 billion won during the same period last year, it said.

An increase in jet fuel prices and a decreased number of holidays had an impact on the quarterly operating income, the statement said.

For the first half of 2018, net profit jumped 66 percent to 53.77 billion won vis-a-vis 32.31 billion won in the previous year. Operating income climbed 34 percent to 58.06 billion won in the first half from 43.41 billion won a year ago. Sales rose 26 percent to a record 591.84 billion won from 468.2 billion won.

Looking ahead, Jeju Air said it is on track to achieve sales of over 1 trillion won this year on the back of a strengthened fleet and profitable routes.

The budget carrier plans to expand its fleet to 39 B737-800NG planes by the end of this year from the current 34.

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