Jeju Air adjusts results to reflect Eastar deal collapse

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Jeju Air adjusts results to reflect Eastar deal collapse

Jeju Air, Korea's biggest low-cost carrier, on Tuesday announced a revised second-quarter earnings report, which showed the company posted larger net losses than initially estimated due to the unsuccessful acquisition of debt-ridden Eastar Jet.
Net losses reached 100.6 billion won ($84.4 million) in the April-June period, which was 17.4 billion won higher than the previous announcement, the company said in a regulatory filing.
Jeju Air attributed the adjustment to the costs related to the failed purchase of Eastar Jet.
Operating losses were also revised to 85.4 billion won from the previous 84.7 billion won, the report showed.  
Last month, Jeju Air scrapped the deal due to rising Covid-19 pandemic-related uncertainties. Jeju Air signed a deal to acquire a controlling 51.17 percent stake in the smaller carrier from Eastar Holdings for 54.5 billion won in March as part of its expansion strategy despite the Covid-19 pandemic. But the deal failed as Jeju Air and Eastar made little progress in talks over debt payments amid the losses caused by the virus outbreak. 
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