Saturday, July 21, 2012

11% revenue rise translates into 2Q loss for Korean Air

Korean Air 747-4B5 (28096/1073) HL7495 sports the special livery "Welcome to Korea" which was designed by Korean children, taxies to the gate following its arrival at Los Angeles International Airport (LAX/KLAX) on January 10, 2012.
(Photo by Michael Carter) 

Korean Air (KE) incurred a KRW159 billion ($140 million) net loss in the second quarter, reversed from a KRW21 billion net profit in the year-ago period. Steep foreign exchanges losses and interest expenses helped push KE into the red for the three months ended June 30.

The Seoul-based carrier did boost second-quarter revenue 11.1% year-over-year to KRW3.27 trillion while expenses rose 6% to KRW3.14 trillion, producing an operating profit of KRW129 billion. That was turned around from an operating deficit of KRW20 billion in the 2011 June quarter, when favorable foreign exchange gains helped KE earn a net profit.

The airline said that “Olympic and seasonal demand” in the current quarter may lead to a “gradual” third-quarter recovery. “With stabilized jet fuel prices and exchange rates, the airline is expected to see improvement in profitability,” the company stated.

KE ended the first half with 122 passenger aircraft and 26 freighters in its fleet. It plans to take delivery of one Airbus A380, one Boeing 737NG and one 747F during the second half of the year.

(Aaron Karp - ATWOnline News)

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