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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Jeju Air announced on April 2nd that its short-term borrowing has increased by 130 billion KRW. The funds were borrowed through financial institutions and will be used for the pre-delivery payment (PDP) for the delivery of the aircraft, specifically the 'B737-8'.
The 130 billion KRW in borrowed funds accounts for 40.1% of Jeju Air's equity capital, which is approximately 324 billion KRW. With this increase, Jeju Air's total borrowings have now reached approximately 504.9 billion KRW.
Previously, Jeju Air entered into a contract with Boeing in 2018 as part of its fleet modernization project to purchase a total of 40 B737-8 aircraft (with an additional 10 options). Of these, 2 aircraft were delivered in 2023, and 1 was delivered in January of this year. Jeju Air is expected to take delivery of the 4th aircraft in the first half of this year.
The short-term borrowing disclosed today will also be used for the PDP for the upcoming aircraft deliveries. Jeju Air expects that the introduction of new aircraft will reduce aircraft leasing costs and maintenance expenses, leading to an estimated 14% reduction in operational costs annually.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
