South Korean carrier Jeju Air will raise 130bn Korean won ($89.03 million) in short-term loans from financial institutions, in order to support upcoming pre-delivery payments for an order of 737 MAX 8 aircraft.
Detailed within a stock exchange filing, the borrowing raises Jeju Air’s total short-term debt from 374.9bn won ($256.9 million) to 504.9bn won ($346 million), marking an increase of 34%. The borrowing was approved by the airline’s board on April 2, 2025.
The airline originally finalised a contract for up to 50 737 MAX 8 aircraft in 2018. The deal - valued at up to $5.9bn at the time of purchase - included 40 firm orders of the 737 MAX 8, with options for 10 additional jets, taking delivery of its first MAX jet in late 2023.
This additional borrowing also represents 40% of the airline’s equity capital, which stood at 324.1bn won ($222.1 million) at the end of 2024.
Earlier this month, Airline Economics reported that Jeju Air's CEO Kim E-bae, as well as the company's largest shareholder Aekyung Group, are reportedly facing criminal charges after the fatal crash of Jeju Air flight 2216, in December last year, according to a person familiar with the matter. However, no formal charges have yet been made public or known.