Jeju Air net profit falls 3.7% due to the high cost of oil
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Jeju Air, Korea’s biggest low-cost carrier by sales, said Tuesday its third-quarter net profit fell 3.7 percent from a year earlier due to high oil prices. Net profit for the three-month period that ended on Sept. 30 reached 31 billion won ($27.6 million), compared with 32.3 billion won ($28.7 million) a year earlier, the company said in a regulatory filing.
The budget airline said high oil prices are to blame for the decline in net profit.
Jet fuel prices came to $87.3 per barrel in the third quarter, up 45 percent from a year earlier.
Operating profit fell 6.5 percent to 37.7 billion won ($33.5 million) in the July-September period from 40.3 billion won ($35.8 million) a year ago. Sales were up 31.3 percent to 350 billion won ($311 million) from 266.5 billion won ($236.8 million) during the same period last year, it said.
Questions & Answers
Q.What is the primary reason given by Jeju Air for the drop in its net profit?
What is the primary reason given by Jeju Air for the drop in its net profit?
The budget airline attributes the decline in net profit to high oil prices. Jet fuel prices increased by 45 percent to $87.3 per barrel in the third quarter compared to the previous year.
Q.Did Jeju Air's sales also decrease during the third quarter?
Did Jeju Air's sales also decrease during the third quarter?
No, Jeju Air's sales actually increased by 31.3 percent in the third quarter, reaching 350 billion won. This is up from 266.5 billion won during the same period last year.
Q.What was the specific net profit figure reported by Jeju Air for the third quarter?
What was the specific net profit figure reported by Jeju Air for the third quarter?
Jeju Air reported a net profit of 31 billion won ($27.6 million) for the three-month period ending on September 30. This figure is down from 32.3 billion won ($28.7 million) a year earlier.
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