Korean Air recorded a consolidated net loss of KRW175 billion ($149 million) for the first quarter, up from a KRW133 loss in the same period a year earlier. The net loss was due mainly to impairment costs related to its financial exposure to struggling sister company Hanjin Shipping. Korean Air achieved an operating profit of KRW323 billion for the period, which was a record for the carrier and an increase of KRW133 billion from the previous year.
Consolidated revenue was essentially flat at KRW2.9 billion. Korean’s international passenger yield in the quarter declined 9.6% when calculated in US dollars, and was down 1.1% in terms of Korean won. Domestic passenger yield dropped 10.8% in dollars and 2.5% in won.
Cargo yield fell more steeply, down 19.9% in dollars and 12.8% in won. The largest drops in cargo traffic were in the North American market, which was down by 24%, and Japan, which saw an 18% fall. Fuel costs fell by more than 40% in the quarter, although rises in other costs meant total expenses were down by just 4.8%.
News & Image Sources: Internet.