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Korean Air posts US$175 million loss but operating profit up 8.5pc

KOREAN AIR has posted a second quarter net loss of KRN200 billion (US$175 million) while operating profit increased 8.5 per cent year on year to KRN173 billion as with revenue rising 3.1 per cent to KRN2.9 trillion.

The South Korean flag carrier also posted a first half operating profit decline of KRN364 billion, down 24.5 per cent year on year as revenue rose 1.5 per cent to KRN5.77 trillion.

Korean Air expects revenue in the current quarter to rise on the back of a recovery in global trade and bullish exports. The company is one of the leading air cargo operators in the world.

Lower travel demand from China and increased spending on jet fuel resulted in the decline in operating profit in the January-June period, it said.

Korean carriers were hit by the Chinese government's decision to ban the sale of travel packages to South Korea from March 15 in retaliation for the deployment of the Terminal High Altitude Area Defence system in South Korea.