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

According to Yonhap News Agency, the surge in profit is attributed to the increased number of flights on routes to Japan and Southeast Asia, which substantially supported the company’s quarterly financial outcome. Despite the rise in net profit, Jeju Air experienced an 11 percent decline in operating profit, which fell to 39.52 billion won from 44.39 billion won a year ago. This decline was primarily due to the weakening of the won, which elevated the dollar-denominated fixed costs for the airline.

The average exchange rate for the dollar climbed to 1,359.38 won in the September quarter
from 1,310.95 won a year earlier, as per data provided by the Bank of Korea. Nevertheless, Jeju Air’s sales experienced a modest increase of 5.3 percent, rising to 460.17 billion won from 436.81 billion won in the same period of the previous year.

Despite the positive third-quarter results, the airline’s net income from January to September saw a decline of 32 percent, falling to 64.82 billion won from 95.18 billion won compared to the same period last year.