AGL 38.75 Increased By ▲ 0.53 (1.39%)
AIRLINK 129.10 Increased By ▲ 0.13 (0.1%)
BOP 8.73 Increased By ▲ 0.88 (11.21%)
CNERGY 4.72 Increased By ▲ 0.06 (1.29%)
DCL 8.49 Increased By ▲ 0.17 (2.04%)
DFML 39.45 Increased By ▲ 0.51 (1.31%)
DGKC 83.25 Increased By ▲ 1.31 (1.6%)
FCCL 33.95 Increased By ▲ 0.53 (1.59%)
FFBL 75.75 Increased By ▲ 0.04 (0.05%)
FFL 12.85 Increased By ▲ 0.03 (0.23%)
HUBC 111.00 Increased By ▲ 0.64 (0.58%)
HUMNL 14.17 Increased By ▲ 0.16 (1.14%)
KEL 5.42 Increased By ▲ 0.27 (5.24%)
KOSM 7.68 Increased By ▲ 0.01 (0.13%)
MLCF 40.80 Increased By ▲ 1.00 (2.51%)
NBP 71.20 Decreased By ▼ -1.12 (-1.55%)
OGDC 190.01 Increased By ▲ 1.72 (0.91%)
PAEL 25.65 Increased By ▲ 0.02 (0.08%)
PIBTL 7.48 Increased By ▲ 0.11 (1.49%)
PPL 155.78 Increased By ▲ 3.11 (2.04%)
PRL 25.65 Increased By ▲ 0.26 (1.02%)
PTC 18.19 Increased By ▲ 0.49 (2.77%)
SEARL 83.70 Increased By ▲ 1.28 (1.55%)
TELE 7.69 Increased By ▲ 0.10 (1.32%)
TOMCL 32.98 Increased By ▲ 0.41 (1.26%)
TPLP 8.40 Decreased By ▼ -0.02 (-0.24%)
TREET 16.75 Decreased By ▼ -0.03 (-0.18%)
TRG 56.55 Increased By ▲ 0.51 (0.91%)
UNITY 28.82 Increased By ▲ 0.04 (0.14%)
WTL 1.36 Increased By ▲ 0.01 (0.74%)
BR100 10,800 Increased By 141 (1.32%)
BR30 31,845 Increased By 513.6 (1.64%)
KSE100 99,961 Increased By 691.7 (0.7%)
KSE30 31,198 Increased By 165.4 (0.53%)

Jeju Air Co Ltd expects record quarterly profit in July-September, as changing lifestyles at home in South Korea translates into demand that more than makes up for China again rejecting its monthly application to provide charter flights. South Korea's biggest low-cost carrier (LCC) by market share is benefiting as more Koreans travel overseas spurred by lower fares, and increasingly spend on small luxuries in a departure from a past focus on savings, Chief Financial Officer Kim Tae-yoon told Reuters.
But the airline, like its peers, is still hamstrung in China, where authorities declined Jeju's request to offer charter flights in August to and from the country - the latest in a series of rejections stretching back to January.
The initial rejections came after Seoul's decision to deploy a US missile defence system to counter any potential threat from North Korea. Beijing objected that the system's radar was capable of penetrating Chinese territory.
Ensuing anti-Korean sentiment involved protests and boycotts of Korean goods and services. Chinese tour groups to South Korea were also halted, as were charter flights. "There are no signs that China will approve the resumption of charter flights," Kim said in an interview. "Nevertheless, we are preparing to resume flights whenever they are approved."
Jeju generated only a small portion of revenue from Chinese charter flights. It has since redeployed aircraft to Japan and Southeast Asia and, in April-June, booked operating profit of 16.2 billion won ($14.23 million) - a 24-fold jump from a year earlier, when bad weather reduced travel demand.
Full-fledged carriers Korean Air Lines Co Ltd and Asiana Airlines Inc - which are more exposed to Chinese business - also posted strong second-quarter earnings as surging chip demand increased cargo from Samsung Electronics Co Ltd and SK Hynix Inc. Jeju operates 29 Boeing Co 737-800s. It plans to expand its fleet to 32 by year-end and add six to eight aircraft each year to reach 50 in 2020, Kim said. All planes will be 737-800s to achieve economies of scale and help keep costs low.
He said Jeju's expansion will accelerate consolidation in South Korea's low-cost carrier sector, which he expects to reach saturation point after two or three years. South Korea has six low-cost carriers, with competition set to increase early next year with two more. Kim expects the sector to eventually settle with two or three carriers.

Comments

Comments are closed.