T’way Air posts record Q1 operating profit as international travel resumes

[Courtesy of T’way Air]

South Korean low-cost carrier T’way Air Co. achieved its best-ever performance in the first quarter on recovering travel demand, especially to and from Japan.

T-way Air said in a regulatory filing on Monday that it posted an operating profit of 82.7 billion won ($62.2 million) for the first quarter, a turnaround from an operating loss of 38.8 billion won a year ago and 3.5 billion won in the fourth quarter of last year.

Its first-quarter revenue came to 358.8 billion won, a five-fold jump compared to the same period last year, which was heavily affected by pandemic travel restrictions. The revenue also grew by 67.6 percent from the fourth quarter of 2022, when demand for Japanese travel began to recover.

The airline’s stock price gained nearly 36 percent this year thanks to its improved performance. On Monday, however, the stock price dropped by 7.68 percent due to profit-taking and concerns over reduced demand for air travel amid tensions between China and South Korea.

T’way Air has been expanding its revenue by continuously introducing new aircraft to prepare for the reopening of international routes.

The airline, which operates 29 aircraft as of the end of last year, plans to add two B737-800NG planes this year and more than six aircraft next year, including jumbo passenger jets.