Korean Air is back to profitability

Korea's largest air carrier Korean Air is back in profit in the second quarter and will continue to expand over the months to come.

SEOUL- Korean Air, South Korea’s flagship airline, announced its financial results for the second quarter of 2012 ended June 30, 2012.  The airline registered an operating income of KRW 3,119 billion  for the second quarter of 2012, a year-on-year increase of 9.9%. Operating profit turned to black from a loss of KRW 38 billion  in the same period of last year to a profit of 100 billion KRW. International passenger and cargo businesses remained the major revenue contributors for the airline, accounting for 56.8% and 25.1% of the operating revenue respectively.

During the second quarter of 2012, it saw increased traffic across all routes, including the Commonwealth of Independent States (CIS, up 41%), Japan (up 28%), China (up 18%) and Europe (up 15%). International passenger segment recorded a year-on-year growth of 10.1% and 9.0% in passenger traffic and carrying capacity, reaching 16,232 million RPK and 20,540 million ASK respectively. Overseas outbound traffic lifted 18%, with 21% and 15% increase in Korea inbound traffic and transit respectively.

To cater the growing demand in summer, the airline increased passenger carrying capacity in high demand routes. With the introduction of new Incheon – Yangon route in the third quarter, as well as stepping up frequency on selected routes, such as Incheon – Jinan, Incheon-Kunming, Incheon-Okayama, Incheon – Guam, Incheon – Paris, the airline sees potential growth in passenger traffic. With stabilized jet fuel price and exchange rate, the airline is expected to see improvement in profitability. The carrier expects also a positive outcome in its cargo business from the London Olympics. The Games and seasonal high demand in the third quarter will help cargo traffic to recover gradually. Korean Air will continue to expand its business prudently while enhancing the quality of its service for the remaining of the year. With its long-standing commitment to achieving “Excellence in Flight”, Korean Air aims to provide the best quality to its customers while bringing the best returns to its shareholders.