Korean Air soars back in Q4 from losses
By Kelly Olsen |
January 23, 2010, Saturday
|
Print Edition
Print Edition
KOREAN Air posted a profit in the fourth quarter, rebounding from a loss the year before, on increased cargo revenue spurred by recovery in the global economy, lower fuel costs and a stronger South Korean currency.
South Korea's biggest airline earned 122.29 billion won (US$107.2 million) in the three months ended December 31, it said in a regulatory filing yesterday. The airline posted a net loss of 644 billion won a year earlier.
The result, Korean Air's third straight quarterly net profit after six consecutive losses, came despite a decline in revenue, which fell 4.9 percent to 2.58 trillion won from 2.71 trillion won a year earlier.
Korean Air Lines Co, the world's biggest carrier of international commercial cargo among passenger airlines, said that earnings were boosted by "surging growth" in the cargo business.
Cargo sales rose 22 percent to 942 billion won from the same period the year before, Korean Air said, calling the sector the "major growth driver" for revenue during the quarter amid "a recovery in consumer spending worldwide."
Korean Air also said that international passenger traffic helped boost earnings, rising 11.3 percent. Jet fuel expenses, meanwhile, declined 22 percent from the same period the year before to 785.2 billion won, helped by a 15 percent decline in the average price per gallon of fuel to US$2.02.
The South Korean won rose 17 percent against the US dollar on average during the quarter from the same period the year before, according to Bank of Korea. International jet fuel is denominated in US dollars so a stronger South Korean won can help reduce fuel costs and reduce the cost of its foreign debt.
The stronger won also helped reduce Korean Air's foreign exchange conversion loss to 19.9 billion won in the October-December period.
South Korea's biggest airline earned 122.29 billion won (US$107.2 million) in the three months ended December 31, it said in a regulatory filing yesterday. The airline posted a net loss of 644 billion won a year earlier.
The result, Korean Air's third straight quarterly net profit after six consecutive losses, came despite a decline in revenue, which fell 4.9 percent to 2.58 trillion won from 2.71 trillion won a year earlier.
Korean Air Lines Co, the world's biggest carrier of international commercial cargo among passenger airlines, said that earnings were boosted by "surging growth" in the cargo business.
Cargo sales rose 22 percent to 942 billion won from the same period the year before, Korean Air said, calling the sector the "major growth driver" for revenue during the quarter amid "a recovery in consumer spending worldwide."
Korean Air also said that international passenger traffic helped boost earnings, rising 11.3 percent. Jet fuel expenses, meanwhile, declined 22 percent from the same period the year before to 785.2 billion won, helped by a 15 percent decline in the average price per gallon of fuel to US$2.02.
The South Korean won rose 17 percent against the US dollar on average during the quarter from the same period the year before, according to Bank of Korea. International jet fuel is denominated in US dollars so a stronger South Korean won can help reduce fuel costs and reduce the cost of its foreign debt.
The stronger won also helped reduce Korean Air's foreign exchange conversion loss to 19.9 billion won in the October-December period.
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