Jeju Air Reports 2025 Operating Loss of KRW 111.7 Billion, No Dividends, and Partial Non-Compliance with Governance Indicators Raising Concerns over Shareholder Value
In 2025, Jeju Air recorded consolidated revenue of KRW 1.58 trillion, operating loss of KRW 111.7 billion, and net loss of KRW 116.4 billion, swinging to a loss from the previous year and significantly deteriorating financial health.
Major shareholder AK Holdings holds 53.62% stake; minority shareholders hold 40.30%, maintaining a stable ownership structure.
No cash dividend declared; medium-term shareholder return policy (35% payout ratio or 2.5% dividend yield by 2027) disclosed but not yet implemented, providing low visibility on shareholder returns.
Non-compliance with three key governance indicators: notice of general meeting 4 weeks prior, CEO succession policy, and cumulative voting, requiring improvement.
Audit committee composed entirely of outside directors, ESG committee in place, internal control policies generally satisfactory, and ESG A-rating from Korea ESG Standards Institute for three consecutive years.
[AI Summary]Jeju Air's large-scale loss in 2025 due to weak aviation demand has deteriorated its financial health, and the suspension of dividends and share buybacks with an unclear timeline for shareholder returns may dampen investor sentiment. Some governance shortcomings are negative, but ESG A-rating and robust internal controls provide some positive offsets.