Korean Air back in black in second quarter after US$33 million loss

KOREAN AIR has posted a profit of KRW100 billion (US$80 million) in the second quarter ending June 30, an increase from last year's operating loss of KRW38 billion.

International passenger and cargo businesses remained the major revenue contributors for the airline, accounting for 56.8 per cent and 25.1 per cent of operating revenue respectively. It hopes to improve its margins with stabilised jet fuel price and exchange rate, said a statement from the carrier.

Cargo traffic recorded a year-on-year fall of 12.2 per cent to 2,013 million freight ton kilometres (FTK) as it saw a year-on-year decrease of nine per cent in Korea outbound traffic and transit traffic respectively. While transit traffic from Japan reported a slump, transit traffic from Oceania was up 47 per cent. Direct flights between Shanghai and the Americas began operating in the second quarter.

Benefiting from the London Olympic Games and seasonal high demand in the third quarter, cargo traffic is expected to recover gradually. In an attempt to address environmental issues and high jet fuel price, Korean Air will introduce fuel efficient and environmentally friendly aircraft to the fleet.

The airline hopes to enhance profitability and sustain growth by developing new markets such as South America and Africa.