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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Jin Air reported an annual operating loss of 16.3 billion KRW for 2025, marking its first yearly deficit in three years, despite record passenger numbers. The low-cost carrier (LCC) posted sales of 1.381 trillion KRW, down 5.5% from 2024, and a net loss of 8.8 billion KRW, reversing the previous year’s net profit of 95.7 billion KRW.
The company attributed the losses to high exchange rates, rising costs, and intensified competition, which led to falling ticket prices even as annual passenger traffic reached 11.24 million, a new high. While Jin Air maintained 10 consecutive quarters of operating profit until early 2025, the second quarter saw a return to losses due to volatile currency conditions and cost pressures.
In response, Jin Air expanded new routes such as Incheon–Ishigakijima and Jeju–Taipei to grow its demand base, and aims to maximize profits in 2026 through flexible route management and introducing high-efficiency aircraft. The airline is also preparing for the 2027 launch of a merged low-cost carrier, targeting a leadership position in the Northeast Asian LCC market.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
