Jeju Air (7C, Jeju) has increased it short-term borrowings limit amount by KRW42.6 billion won (USD31.2 million), according to an August 6 regulatory filing. The South Korean low-cost carrier lifted the limit from KRW289,615,000,000 (USD212.2 million) to KRW332,215,000,000 (USD243.4 million).
The filing noted that the new limit was the combined amount of borrowings from two financial institutions. It said the funds borrowed so far, KRW100 billion (USD73.3 million), were used for day-to-day operations. The filing also noted the existence of a separate borrowing facility against which KRW57.4 billion (USD42 million) was owed but being repaid.
Meanwhile, Jeju Air reported its first net loss in seven quarters last week. The airline attributed the 2024 second-quarter loss of KRW21.4 billion (USD15.7 million) to high foreign exchange rates, inflation, and global supply chain issues. The loss was despite record quarterly revenue of KRW967.1 billion (USD708.6 million).
According to ch-aviation PRO airlines, Korea's largest LCC flies to 48 airports in 15 countries with a fleet of 41 aircraft, including two B737-8s, thirty-seven B737-800s, and two B737-800(BCF)s. When announcing the loss this week, Jeju Air said it intended to continue expanding its market share in short- and medium-haul routes, including starting flights to Batam and Denpasar.
