Jeju Air Co., South Korea's leading budget carrier, said Sunday it has signed an initial pact with an Indonesian provincial government for a partnership to open a new route between the two countries.

Jeju Air has signed a memorandum of understanding with North Sulawesi Province to explore opportunities to offer flights to the Southeast Asian country, the company said in a statement.

The Indonesian government aims to develop new tourism sites to attract travelers from around the world under the "10 New Bali's" policy.

Jeju Air plans to support increasing routes with B737-8s, which will be delivered from next year through 2027. It ordered 40 B737-8s, formerly called the B737 MAX, for 5 trillion won ($4 billion).

The budget carrier used to operate 45 B737-800NG chartered planes on 87 routes, including six domestic routes, before the pandemic. The number of planes has fallen to 39.

Jeju Air is targeting to turn around next year as eased virus restrictions unleash pent-up travel demand.

The low-cost carrier posted net losses for three consecutive years through 2021 amid the pandemic.

The addition of a new route and planes will also help put Jeju Air back on track though it depends on how much travel demand will recover later this year, Jeju Air CEO Kim E-bae said in June. (Yonhap)