Jeju Air (089590.KS), South Korea's largest low-cost carrier, transported the most passengers among the country's budget airlines in January and February this year while strengthening its focus on profitability-driven management.
According to finalized statistics from the Ministry of Land, Infrastructure and Transport's (MOLIT) aviation information portal system released on the 31st, Jeju Air carried 1,176,532 passengers in January and 1,067,659 in February, totaling 2,244,191 over the two months. The figure represents a 27.5% increase from 1,760,402 during the same period last year.
T'way Air (091810.KS) followed with 2,163,114 passengers, trailed by Air Busan with 1,902,858 and Eastar Jet with 1,178,202.
Jeju Air also posted load factors of 94.5% on domestic routes and 91.3% on international routes, exceeding the LCC averages of 90.9% and 89.2%, respectively.
Jeju Air's top ranking in passenger volume is particularly significant as it demonstrates resilience at a time when high exchange rates and intensifying competition have pushed many LCCs into losses. The carrier previously reported fourth-quarter 2024 revenue of 474.6 billion won ($347 million) and operating profit of 18.6 billion won, marking its first return to profitability in five quarters since the third quarter of 2024. Compared with the same quarter a year earlier, revenue grew 5.4% and operating profit surged by nearly 60 billion won.
Jeju Air attributed the earnings improvement to structural reforms through an increased share of next-generation aircraft, cost structure optimization, and more sophisticated route strategies. The airline has been purchasing Boeing 737-8 jets to modernize its fleet and boost profitability.
The carrier is also laying a solid foundation for its next phase of growth through profitability-focused management. It plans to introduce seven next-generation aircraft, retire aging planes, and sell assets to strengthen liquidity and financial soundness. The company will also accelerate digital transformation powered by artificial intelligence across its operations. In addition, Jeju Air plans to expand investment in safety management systems and core flight infrastructure to further bolster customer trust.
Jeju Air expects to sustain solid earnings momentum in the first quarter of this year, following its fourth-quarter performance, buoyed by the winter peak travel season and strong demand on Japan routes.
Hanwha Investment & Securities said, "We maintain a negative view on the overall domestic LCC sector, but Jeju Air should be able to endure based on the strength it built up last year."
