News
Asiana Airlines turns around
February 10th 2017
South Korea’s second largest carrier, Star Alliance member Asiana Airlines, has released its full-year 2016 results. Read More » The airline managed to mend its bottom line, reversing a 139 billion won (US$122 million) 2015 loss to a 54 billion 2016 profit.
The carrier said the improved result was due to its cost-cutting programme that saw it terminate several loss-making routes, including flights to Denpasar and Yangon, and launch its own low-cost carrier (LCC), Air Seoul, earmarked to take over low-yielding routes from the parent, including numerous flights to Japan.
"Favorable business conditions, such as low oil prices, as well as the company's restructuring efforts, helped improve its earnings," Asiana said in a press release, adding the sale of noncore assets, such as its 50% stake in Kumho Asiana Plaza Saigon, has helped reverse its fortunes.
While fiscal 2016 ended on a positive note for Asiana, the October-December fourth quarter did not. The airline suffered from significant currency fluctuations as the won depreciated against the greenback, producing a 116 billion quarterly net loss.
South Korea’s largest carrier, Korean Air Lines, is yet to post its full-year 2016 results. Korean is also expected to have incurred significant foreign exchange losses.
In the interim, air passenger growth in South Korea is still experiencing double digit growth, although most of the expansion is happening at the country’s LCCs. K-Air, a new budget airline, is expected to launch operations within the first half.
