Air Premia Approves Capital Increase to Restore Financial Stability

South Korean hybrid carrier Air Premia has approved a shareholder rights offering aimed at eliminating its capital impairment and strengthening its financial position, following a board decision on July 8.

The capital increase will be supported by the airline’s majority shareholder, Tire Bank, which is expected to invest more than KRW 100 billion. The fundraising is intended to comply with a 2024 directive from South Korea’s Ministry of Land, Infrastructure and Transport requiring the airline to improve its capital structure after its capital impairment ratio remained above regulatory thresholds.

Air Premia has taken several steps to address its financial position, including a capital reduction completed in April that lowered its stated capital before launching the new equity raise. According to the report, the latest capital injection is expected to reduce the airline’s capital impairment ratio below the government’s 50% requirement, although the final outcome will depend on the pricing of the new shares.

Details of the rights offering, including the final issue price and total amount to be raised, have not yet been disclosed and are expected to be announced later this month.

The proceeds will be used to improve the airline’s financial health while supporting future fleet expansion and the development of additional medium- and long-haul routes.