Jeju Air Q2 net losses widen on failed Eastar merger

 
Jeju Air Co., South Korea's biggest low-cost carrier, on Tuesday announced a revised second-quarter earnings report, which showed the company posted larger net losses than initially estimated due to the unsuccessful acquisition of debt-ridden Eastar Jet Co.

Net losses reached 100.6 billion won ($84.4 million) in the April-June period, which was 17.4 billion won higher than the previous announcement, the company said in a regulatory filing.

Jeju Air attributed the adjustment to the costs related to the failed purchase of Easter Jet Co.

Operating losses were also revised to 85.4 billion won from the previous 84.7 billion won, the report showed.

Last month, Jeju Air scrapped the deal due to rising COVID-19 pandemic-related uncertainties.

Jeju Air signed a deal to acquire a controlling 51.17 percent stake in the smaller carrier from Eastar Holdings for 54.5 billion won in March as part of its expansion strategy despite the COVID-19 pandemic.

But the deal was pulled back as Jeju Air and Easter made little progress in talks over debt payments amid the losses caused by the virus outbreak. (Yonhap)