S. KOREA: Korean profits up on healthy cargo growth

Korean Air, the world’s largest air cargo carrier, reported a better-than-expected quarterly operating profit, fueled by higher traffic and a stronger won currency against the dollar. The carrier could continue to do well in the coming quarters as travel demand is expected to stay robust in Asia’s fourth largest economy and as a stronger won […]


Korean Air, the world’s largest air cargo carrier, reported a better-than-expected quarterly operating profit, fueled by higher traffic and a stronger won currency against the dollar.

The carrier could continue to do well in the coming quarters as travel demand is expected to stay robust in Asia’s fourth largest economy and as a stronger won will cut the cost of importing fuel and servicing dollar-denominated debt.

The strength of the won is likely to off set skyrocketing oil prices, while the government is also considering allowing Korean Air to increase fuel surcharges and pass on to passengers the impact of rising costs, according to Reuters. On Monday, the won hit its strongest level versus the dollar in more than 10 years.

Korean Air earned an operating profit of 281.4 billion won (US$310.4 million) in the third quarter ended 30 September, compared to a 193.8 billion won profit a year ago and 75.4 billion won in the previous quarter.

The rise was fueled by an 8.1 per cent increase in sales as international passenger revenue, which accounts for more than half of the company’s sales, rose 10 per cent and as cargo sales gained 6.3 percent.