Jeju Air shifts to profit in Q4 on eased travel restrictions

Jeju Air, Korea's biggest low-cost carrier, said Tuesday it shifted to a net profit in the fourth quarter as eased Covid-19 restrictions unleashed pent-up travel demand.

The budget carrier swung to a net profit of 17.4 billion won ($14 million) for the three months ended Dec. 31 from a net loss of 53.9 billion won during the same period of 2021, the company said in a statement.

The turnaround comes in 15 quarters after posting net losses in the past 14 consecutive quarters since the second quarter of 2019.

"The company preemptively resumed flights to major Japanese cities, such as Tokyo, Osaka and Fukuoka, in October when Japan allowed visa-free travel for inbound passengers. The move helped prop up the bottom line," the statement said.

In October, South Korea removed a Covid-19 PCR test requirement for inbound travelers on the first day of their arrival.

Japan lifted the ban on the number of inbound passengers and resumed visa-free travel for visitors from specific countries, including South Korea, on Oct. 11.

Jeju Air also swung to an operating profit of 18.72 billion won in the fourth quarter from an operating loss of 67.31 billion won a year ago.

Yonhap