Air Busan Swings to Profit in Q3 ... Can It End Its Losses After Just One Year?

[Financial News] Air Busan posted an operating profit in the third quarter. There are hopes it can emerge from the annual operating loss it recorded last year after just one year.
Air Busan released preliminary third-quarter results on the 4th, reporting revenue of 247.8 billion won and operating profit of 4.7 billion won. This was a strong performance compared with the same period last year, when revenue was just 176.3 billion won and the company posted an operating loss of 28.5 billion won.
For the first three quarters combined, revenue rose 24% year over year to 740.9 billion won, but the company posted an operating loss of 400 million won, swinging to a loss from operating profit of 500 million won in the same period last year.
However, given the small size of the loss and the upward trend in revenue, some expect the company could post a full-year profit this year. It recorded an operating loss of 4.5 billion won last year. After posting operating profit of a substantial 146.3 billion won in 2024, it suffered a sharp decline. If it returns to profit this year, it will have emerged from the red after just one year.
Air Busan said the key to its strong third-quarter performance was expanding non-scheduled routes amid growing passenger demand. It said that rising revenue enabled it to return to profit despite higher costs, including fuel expenses, amid high oil prices.
In the fourth quarter, Air Busan plans to continue expanding non-scheduled routes from Gimhae to destinations including Ibaraki Prefecture and Kagoshima in Japan, tapping travel demand during the winter peak season. It also plans to boost results further with new services to Chiang Mai, Thailand, and Guangzhou, China.
Meanwhile, Air Busan will be absorbed into Jin Air in March next year and relaunch as the combined Jin Air. The merger will bring together three low-cost carriers (LCCs): Jin Air, Air Busan, and Air Seoul. 

[email protected] Kim Yun-ho Reporter