Korean Air Reports Q1 2011 Results

Korean Air has reported an operating revenue of 2,719 billion KRW for Q1 2011, a year-on-year increase of 6.3%, and an operating profit of 145 billion KRW.

Income before tax recorded a year-on-year increase of 16.3%, reaching 258 billion KRW during the reporting period. Net income amounted to 190 billion KRW, up 13.9% thanks to foreign currency translation gains.

Korean Air’s international passenger and cargo businesses remained its major revenue contributors in the first quarter, accounting for 53.7% and 31.4% of the operating revenue, respectively.

The airline posted overall respective growths of 2% and 3% with regard to international passenger capacity and traffic compared to the corresponding period of the previous year, reaching 18,752 million ASK and 14,575 million RPK, respectively, thanks primarily to traffic growth in international routes, including China, Japan, SE Asia and the Americas. Moreover, the airline saw a surge of 6% in Korean-inbound traffic and transit passenger volume during the reporting period, which also facilitated the overall growth of its international passenger business.

Demand for world cargo progressed steadily as reflected in the performance of Korean Air’s cargo business in the first quarter of 2011. Capacity increased by 0.5 % to 3,017 million AFTK while traffic dropped slightly by 1.6% to 2,277 million FTK. SE Asian and Japanese cargo routes exceeded their performances year-on-year. Meanwhile, transit cargo traffic recorded significant growth, particularly in outbound routes to Europe (up 17%), SE Asia (up 4%) and Japan (up 3%).

Korean Air said it expects 2011 to be another challenging yet thriving year for the aviation industry. International air traffic demand, especially from the SE Asian region, is expected to see a further boost. Favorable factors in Korea, such as a stable US dollar exchange rate, positive US visa waiver program influences, and stronger passenger traffic demand from China and countries in SE Asia, should also benefit the airline in the year to come.

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