Asiana A380-841 (c/n 155) HL7626 arrives at Los Angeles International Airport (LAX/KLAX) on September 25, 2014.
(Photo by Michael Carter)
South Korea’s Asiana Airlines saw its net profit dip significantly in the third quarter despite strong international demand, with an unfavorable exchange rate partly to blame for the decline.
The carrier reported a consolidated net profit of KRW13.5 billion ($12.4 million) for the three months ended Sept. 30, down 84% from a net profit of KRW82.8 billion in the same period last year. However, its operating profit for the quarter actually rose by 3.6% to KRW65.7 billion.
The improved operating result was reflected in the performance of the international passenger division, which is key in a country with relatively low domestic traffic. International passenger revenue rose 1%, with traffic up 6.8% on a 4.6% capacity hike. Load factor rose 1.7 points to 81.8% and yield climbed 3%.
On the cargo side, revenue fell 4.7% in the quarter. Capacity dropped 3.4% and traffic declined 3.6%. Load factor was essentially flat at 71.9%; yield increased 7.6%.
China and the US represented the largest individual passenger markets, with 21.3% and 19.6% of revenue respectively, while the US remains the biggest cargo market with 45.7% of revenue.
In the fourth quarter, Asiana is seeing increasing demand in China, Southeast Asian and European passenger markets, as well as strengthening outbound travel from Korea to Japanese destinations. The carrier is taking advantage of these trends with increased frequencies on some Chinese routes, and on Southeast Asian and Pacific Island leisure routes.
Cargo demand is forecast to increase during the upcoming peak shipping season, and cargo volume is expected to pick up on US routes in particular, due to a strengthening economy. Cargo frequencies on certain US, European and Chinese routes will be increased, and Asiana will have greater access to South American markets, thanks to alliance partners.
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