Jeju Air has returned to profitability for the first time in five quarters since the third quarter of 2024. The low-cost carrier plans to improve profitability by introducing next-generation aircraft with higher fuel efficiency.
The airline reported consolidated revenue of 474.6 billion won and operating profit of 18.6 billion won for the fourth quarter of last year, the company announced on the 9th. Revenue increased 5.4% year-over-year while operating profit swung to black. This marks the first quarterly operating profit since the third quarter of 2024.
For the full year, Jeju Air posted revenue of 1.5799 trillion won and an operating loss of 110.9 billion won. Annual revenue declined 18.4% compared to 2024, with operating results turning to a loss.
The company attributed its fourth-quarter turnaround to structural improvements from expanding its next-generation fleet. Jeju Air purchased two Boeing 737-8 aircraft in the fourth quarter while retiring one aging aircraft to lower its average fleet age. The shift toward fuel-efficient next-generation aircraft reduced cumulative fuel costs by 19% in the first three quarters compared to the same period in 2024.
Efficient route management also supported the earnings recovery. The carrier surpassed 4 million annual passengers on Japan routes last year, a record high, after increasing frequency on the Incheon-Osaka route starting in October. The airline maximized performance gains through efficient route operations, including launching new services to Guilin from Incheon and Shanghai from Busan.
Jeju Air plans to focus on building a foundation for renewed growth through disciplined management this year. The company will introduce seven next-generation aircraft while reducing aging planes, maintaining current business scale rather than aggressive expansion. It will also sell assets to manage liquidity and financial ratios.
"We are centering this year's management strategy on disciplined operations to respond to an increasingly uncertain business environment marked by oil price and exchange rate volatility, aviation market restructuring, and intensifying competition," a Jeju Air official said. "We will focus on building a sustainable profit structure and improving performance by enhancing operational stability and efficiency."