Jeju Air suffers major setback as operating loss more than doubles

(Jeju Air)

South Korea’s largest low-cost carrier Jeju Air suffered an operating loss of 84.7 billion won ($73.3 million) during the second quarter this year, raising its net operating loss for the first half of the year to nearly 150 billion won, according to a tentative financial report released Wednesday.

The deficit grew by over 200 percent compared to the same time last year when the airline posted an operating loss of 27.4 billion won. Jeju Air posted 36 billion won in sales, down a whopping 88.5 percent from a year before.

The dwindling figures reflect the level of impact that the coronavirus pandemic has had on the aviation industry this year, with the number of international flights at Incheon Airport down by over 95 percent in recent months.

Jeju Air currently flies only four of its 76 international routes and eight domestic routes.

The airline last month had called off its plan to acquire Eastar Jet, citing uncertainties.

By Yim Hyun-su (hyunsu@heraldcorp.com)