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Korean Air returns to black following revenue increase

Korean Air returns to black following revenue increase

Korean Air has announced its financial results for the second quarter of 2012, posting operating income of KRW3,119 billion for the period.

This is a year-on-year increase of 9.9 per cent.

Operating profit turned to black from a loss of KRW38 billion in the same period of last year to a profit of KRW100 billion.

International passenger and cargo businesses remained the major revenue contributors for the airline, accounting for 56.8 per cent and 25.1 per cent of the operating revenue respectively.

During the quarter ended June 30th, Korean Air saw increased traffic across all routes, including the Commonwealth of Independent States (CIS, up 41 per cent), Japan (up 28 per cent), China (up 18 per cent) and Europe (up 15 per cent).

International passenger segment recorded a year-on-year growth of 10.1 per cent and nine per cent in passenger traffic and carrying capacity, reaching RPK16,232 million and ASK20,540 million respectively.

Overseas outbound traffic lifted 18 per cent, with 21 per cent and 15 per cent increase in Korea inbound traffic and transit respectively.

To cater the growing demand in summer, the airline will increase 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 etc., the airline sees potential growth in passenger traffic.

With stabilised jet fuel price and exchange rate, the airline is expected to see improvement in profitability.