Korean Air posts full-year net loss

Seoul-based Korean Air has announced today its results for the fourth quarter and full year ended 31 December 2011 which saw the carrier swing to a consolidated net loss last year because of what it said was a surge in jet fuel expenses, a weaker local currency and sluggish cargo demand amid economic uncertainties around the globe.


Korean Air posts full-year net loss


Seoul-based Korean Air has announced today its results for the fourth quarter and full year ended 31 December 2011 which saw the carrier swing to a consolidated net loss last year because of what it said was a surge in jet fuel expenses, a weaker local currency and sluggish cargo demand amid economic uncertainties around the globe.

For the whole of 2011, it had a net loss of KRW98.2 billion (US$87 million), compared with a net profit of KRW623.9 billion a year earlier.

International passenger and cargo businesses remained the major revenue contributors for the airline in Q4, accounting for 55.1 per cent and 29.3 per cent of the operating revenue respectively. Compared to the same period last year, net income for Q4 returned to the black and reached KRW125 billion.

Cargo traffic recorded a yearon- year fall of 6.7 per cent to 2,284 million FTK as it saw a year-on-year decrease of 10 and 4 per cent in Korea outbound traffic and transit traffic respectively. While outbound cargo traffic from China reported a slump, outbound traffic from Southeast Asian Countries, Japan, Americas and Europe recorded increases of six, five, six and three per cent respectively. In Q4, it saw the return of wet-lease aircraft in October and November for profitability improvement. Charter flights to Sao Paulo and Lima were also put into operation in the quarter.