Korean Air posts 2016 net loss; set to take new aircraft deliveries

Korean Air reported a consolidated net loss of KRW642 billion ($565 million) in the fourth quarter of 2016, reversed from a profit of KRW132 billion in the same period a year earlier. The full-year 2016 loss was KRW557 billion, slightly better than the KRW563 billion loss in 2015.

The Seoul-based carrier recorded an operating profit of KRW178 billion for the fourth quarter, with foreign currency-related losses and interest costs the main reason for the net loss. Losses related to Korean Air’s investments in the failed Hanjin Shipping contributed to the full-year result.

While total sales were up 0.5% in the fourth quarter, passenger revenue dipped 9% on routes to North America and 6% to Europe. International yield denominated in won dropped 4.6%, and domestic yield was down 3.8%.

Korean Air is preparing for a busy year of aircraft deliveries, with plans to begin receiving Boeing 787-9s and Bombardier CS300s.

The Seoul-based carrier expects to take delivery of its first 787-9 later this month. A total of five -9s are scheduled for 2017, with the additional aircraft arriving in April, July, September and December, the airline revealed in its latest fleet update.

Korean Air is scheduled to receive seven CS300s this year. These aircraft are expected to be delivered every month from August through December, with two deliveries in November and two in December.

The carrier’s other passenger aircraft deliveries in 2017 will consist of three more Boeing 747-8Is, scheduled to arrive in April, May and July. This will give Korean Air 10 of this type. It is also adding a single 777F in its cargo fleet (its 12th), slated to be delivered in September.

(Adrian Schofield - Aviation Daily / ATWOnline News)