Korean Air posts largest ever quarterly profit

Korean Air posts largest ever quarterly profit

Korean Air has posted its biggest quarterly profit in history, partially dispelling recent worries about its financial instability.

In the third quarter of 2016, Korean Air recorded sales revenue of 3.06 trillion won, an operating profit of 447.6 billion won and a net profit of 428 billion won.

The 447.6 billion won operating profit was the biggest ever quarterly operating profit for Korean Air, surpassing previous record of 416.5 billion won in the third quarter of 2010.

Sales and operating profit were up by 4.7 per cent 34.9 per cent respectively, when compared to the same period last year.

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Net income also returned to profit.

After reflecting a total loss of 825 billion won - largely related to the collapse of Hanjin Shipping in its financial statements for the past three quarters - Korean Air has completely removed its financial risk brought by the partner organisation.

A Korean Air spokesmen said: “As Hanjin Shipping is under court receivership, Hanjin Group will no longer provide further financial support to the company.

“Thus, Korean Air’s debt ratio will not be influenced anymore.

“We will monitor closely on the market response and will put in our best effort to improve our financial structure.”