Air Premia targets flying into profit by 2024

Industry

Published: 14 Jun. 2023, 19:01 Updated: 14 Jun. 2023, 19:05

Air Premia targets flying into profit by 2024

Yoo Myung-sub, CEO of Air Premia, reveals the vision of the low-cost carrier during a press conference held in celebration of its first year of international flights in Yeouido, western Seoul, on Wednesday. [AIR PREMIA]

Debt-laden Air Premia vowed Wednesday to swing into profit next year by flying to additional long-haul destinations in America and Europe.

The low-cost carrier (LCC) pledged to raise profit by expanding mid and long-distance flights, but warned that it expects to suffer losses for the remainder of the year.

“In the coming year, we plan to add four Boeing 797-9 Dreamliner aircraft to our fleet and make a turnaround,” Yoo Myung-sub, CEO of Air Premia and a former Korean Air employee, said during a press conference marking the company's first-year anniversary of its international flight operation held in Yeouido, western Seoul, on Wednesday. Yoo expressed confidence in reaching the revenue target based on positive customer feedback and external factors including exchange rates and fuel prices.

Founded in 2017, the airline launched its inaugural international flight from Incheon to Singapore in July 2022.

Air Premia differentiates itself by focusing on long-haul routes traditionally not served by other LCCs, but with fares ranging from 80 to 90 percent of those charged by full-service carriers such as Korean Air and Asiana Airlines. The company reduced operating costs by standardizing its fleet with the Boeing 787-9 and eliminating the business class cabin. Economy passengers must purchase snacks and additional beverages, including beer, separately, contributing to the cost-cutting.

Air Premia has set performance targets including surpassing 1.15 trillion won ($9.95 billion) in revenue and achieving an operating profit of over 100 billion won.

"To meet our targets, we plan to introduce up to 15 aircraft by 2027 and expand that number to over 20 by 2030,” Yoo said. Air Premia currently has five aircraft.

However, the airline acknowledged that it expects to experience losses until the end of this year due to additional staffing and aircraft acquisition.

Air Premia currently flies to Ho Chi Minh, Tokyo, Los Angeles, Bangkok and New York City. The airline is now preparing for full-scale operations in Europe, starting with the Frankfurt route beginning on June 23, which already has an average booking rate of 80 percent.

Air Premia is also considering expanding its routes to other European destinations including Paris, Rome, and Barcelona, as well as key destinations in the Americas including Seattle and Hawaii.

Regarding the long-haul route slots that could open up from the potential merger of Korean Air and Asiana Airlines, Yoo stated, "We have received an expression of interest, and we have made it clear that we intend to become a new player on those routes."

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]