Financial Round Up
Korean carriers report robust results
November 27th 2015
Korean Air Lines and Asiana Airlines boosted their operating profits in the third quarter ended September 30. Read More » Korean Air's revenue slid 6%, to 2.97 trillion won ($2.57 billion), with the outbreak of the Middle East Respiratory Syndrome (MERS) in May temporarily denting the number of foreign visitors to South Korea, particularly from short-haul markets in China and Japan. Nevertheless, Korean Air’s operating profit surged 20%, to 289.5 billion won year-on-year, in the period, helped by an increase in outbound cargo, and cheaper oil. “Riding the tailwinds of good oil prices and more cargo traffic, we’re going to buy more large airplanes to offer better services to long-haul travellers,” the Hanjin Group carrier said in a statement.
At the country’s second largest carrier, Asiana Airlines, sales improved 1%, to 1.53 trillion won, and operating profit grew 5%, to 69.3 billion. Echoing rival Korean Air, Asiana said cargo figures to Southeast Asia, China and other regional destinations fared better than expected. Asiana and Korean said they expected improvements in the fourth quarter and beyond.
