Jeju Air reports 83.03 billion won net loss in third quarter

Jeju Air, Korea’s biggest budget carrier, said Monday its third quarter net losses widened from a year earlier on high oil prices and a weak won amid stricter virus curbs.

Net losses deepened to 83.03 billion won ($70 million) in the three months ended in September from a net loss of 66.79 billion won in the same period of last year, the company said in a regulatory filing.

“Air passenger traffic declined as the country applied stricter distancing rules following the fourth wave of pandemic. High oil prices and a weak won also weighed on the bottom line,” a company spokesman said over the phone.

The won’s weakness against the dollar drove up the value of dollar-denominated debts when converted into the local currency, he said.

The dollar rose to 1,184.90 won at the end of September, compared with 1,173.50 won a year earlier, according to data from the Bank of Korea.

Operating losses widened to 91.32 billion won in the third quarter from 70.06 billion won a year ago. Sales rose 15 percent to 68.22 billion won from 59.55 billion won during the same period.

From January to September its net losses narrowed to 218.38 billion won from 268.80 billion won in the year-ago period.