Seoul: Jeju Air Co., South Korea’s largest low-cost airline, reported a 59 percent surge in its third-quarter net profit, driven by heightened travel demand on short and mid-haul routes. The airline’s net profit for the quarter ending in September rose to 43.08 billion won (approximately US$31 million), compared to 27.07 billion won in the same period last year.

According to Yonhap News Agency, the company attributed its improved financial performance to increased flights on routes to Japan and Southeast Asia, which bolstered the quarterly bottom line. Despite the rise in net profit, Jeju Air’s operating profit declined by 11 percent, dropping from 44.39 billion won in the previous year to 39.52 billion won. This decrease was attributed to the impact of a weak won, which increased dollar-denominated fixed costs. During the September quarter, the dollar averaged 1,359.38 won, up from 1,310.95 won a year earlier, based on data from the Bank of Korea.

Sales for the quarter saw a 5.3 percent increase, climbing
to 460.17 billion won from 436.81 billion won during the same period last year. However, for the first nine months of the year, Jeju Air experienced a 32 percent decline in net income, falling to 64.82 billion won from 95.18 billion won during the corresponding period in the previous year.

In a related announcement, Jeju Air revealed plans to invest 39.5 billion won in acquiring a B737-800 jet to expand its fleet. The airline currently operates 41 aircraft, consisting of 39 passenger jets and two cargo planes.