Jeju Air to Sell IT Unit Stake for $30m Liquidity Boost

South Korea’s Jeju Air has announced plans to divest its entire stake in IT subsidiary AK IS to parent company AK Holdings for KRW43.3 billion (USD29.7 million), as the low-cost carrier seeks to strengthen its balance sheet and improve liquidity.

In a stock exchange filing dated February 10, Jeju Air said it will dispose of 7.8 million shares in AK IS at KRW5,550 per share. The transaction is scheduled to close on April 10, 2026. Upon completion, the airline will no longer hold any equity in the unlisted IT affiliate.

Jeju Air stated that the purpose of the sale is to secure liquidity and enhance its financial structure amid mounting operational pressures. AK IS provides system construction and consulting services across Aekyung Group, the conglomerate that includes AK Holdings as its core management entity.

The divestment comes as Jeju Air navigates significant financial headwinds. In its provisional 2025 performance report, the airline recorded a consolidated net loss of KRW143.6 billion (USD98.4 million), reversing a net profit of KRW21.7 billion in 2024. Operating performance also deteriorated, swinging to a loss of KRW110.9 billion (USD76 million), while annual revenues declined 18.4% year-on-year to KRW1.6 trillion (USD1.1 billion).

The airline’s balance sheet has also come under strain. Total liabilities rose to KRW2.1 trillion (USD1.4 billion) at the end of 2025, representing a 23.9% increase from KRW1.7 trillion a year earlier. The share sale is expected to provide a near-term cash injection that could help stabilize finances and support core airline operations.

Meanwhile, Aekyung Group has been pursuing broader restructuring measures, including the sale of non-core assets, to concentrate capital on strategic businesses such as Jeju Air and Aekyung Chemical. In late 2025, AK Holdings divested its stake in Aekyung Industrial to raise funds aimed at reinforcing the group’s aviation and chemical segments.

The planned disposal of the AK IS stake reflects a wider effort within the Aekyung Group to streamline operations and bolster liquidity, as Jeju Air works to restore profitability in a competitive and volatile airline market.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com