Air Premia Plans 110 Billion Won Rights Offering Amid Financial Strain

Air Premia, a South Korean low-cost carrier, is set to raise approximately 110 billion won (about $80 million) through a rights offering to existing shareholders. The airline announced on Tuesday that it plans to issue 550 million new common shares.

This capital increase is being undertaken as part of a financial restructuring plan submitted to the Ministry of Land, Infrastructure, and Transport. Air Premia is currently in a state of complete capital erosion and was ordered by the ministry in September 2024 to reduce its capital erosion rate to below 50% by September of this year.

The funds secured from the offering, scheduled for subscription in September and payment in late September, will be allocated towards improving the airline's financial structure and reinforcing its business foundation. The company aims to stabilize its financial base and secure medium-to-long-term growth engines through this initiative.

Park Kwang-eun, head of Air Premia's management division, expressed the company's commitment to continuously enhancing its business competitiveness and meeting the trust of customers and the market. The rights offering's record date for new share allocation is set for August 19.

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We will continuously enhance our business competitiveness and meet the trust of customers and the market.