티웨이항공 항공기. (사진=티웨이항공)

 

[Alpha Biz=(Chicago) Reporter Paul Lee] In the first quarter of this year, low-cost carriers (LCCs) posted record-high earnings. The demand for travelers whose wallets have become thinner due to high prices and testicle rates has flocked to Japan and Southeast Asia, where LCCs' main routes are located.

Jeju Air, the No. 1 LCC company, announced on the 9th that it had sales of 422.3 billion won and operating profit of 70.7 billion won in the first quarter. Sales jumped 421% from the same period last year, with both sales and operating profit at an all-time high. Operating profit hit a record high while successfully turning into a surplus for the second straight quarter. In the fourth quarter of last year, it turned into a surplus for the first time in 15 quarters and showed a series of positive results.

Other LCCs also posted all-time highs this year. Jin Air announced that it recorded sales of 352.5 billion won and operating profit of 84.9 billion won in the first quarter. Sales jumped 422% from the first quarter of last year and turned to surplus from operating losses.

It is thanks to the increase in the number of new flights to Okinawa and Sapporo, Japan, to preoccupy the demand for travelers. T'way Airlines posted its first surplus in 16 quarters with sales of 358.7 billion won and operating profit of 82.7 billion won in the first quarter.

Air Busan posted sales of 213.1 billion won and operating profit of 47.8 billion won in the first quarter. It is the largest quarterly sales since its establishment, and its operating profit has turned to surplus in 16 quarters.

With LCC companies posting all-time highs, their operating profit ratio, which represents the "internal stability" of management, exceeded 25%. This is comparable to the booming semiconductor business and is two to four times higher than the manufacturing average operating profit ratio of 5 to 10%. First of all, Jin Air showed the highest operating profit ratio of 24.1%. T'way Airlines (23.0%) and Air Busan (22.4%) both saw their operating profit margins exceed 20%. Jeju Air, the No. 1 LCC industry, posted an operating profit ratio of 16.7%.

 

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