Air Premia posted an operating profit of 21.7 billion won ($16.8 million) over sales of 129.6 billion won in the third quarter of 2023, the South Korean budget carrier said on Thursday. The company achieved its first quarterly surplus since its founding in July 2017 and around a year after it began operating its first international flight in July 2022. It is also the first time that the carrier’s quarterly sales exceeded 100 billion won.

Cumulatively for the first three quarters of this year, Air Premia recorded a revenue of 256.1 billion won and an operating profit of 15.3 billion won. The airline attributed its success in achieving profitability to the growth in demand for international passenger flights and its cargo operations.

The company highlighted that the increase in international passenger demand and the efficient management of its cargo business were instrumental in improving its financial performance. Despite acknowledging variables including global fuel prices and currency fluctuations, Air Premia was optimistic about its future, saying that the airline could achieve revenues of 360 billion won by the end of 2023 if the current trends continue, potentially marking its first annual profit.

Efficiently operating regular routes to destinations like Los Angeles, New York, and Frankfurt, along with charter flights, Air Premia transported a total of 479,492 passengers in the first three quarters of 2023 with an average occupancy rate of 86.3 percent.

Especially noteworthy is the performance on routes to North America, with flights to destinations like LA and New York contributing significantly. These North American routes accounted for 33.1 percent of the total passengers, transporting 158,519 passengers, contributing significantly to the airline’s overall performance.

Furthermore, in its cargo operations, Air Premia managed to transport 21,653 tons of cargo, generating a revenue of 27.6 billion won, which accounts for 10.8 percent of the total revenue for the company till the third quarter of 2023.

Air Premia plans to commence irregular flights to Honolulu, Hawaii, by the end of this year. The company also aims to acquire two B787-9 aircraft next year, expanding its fleet to operate more than seven aircraft.

By Pulse

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