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Korean Air first-quarter net profit rises on passengers, cost cuts

Korean Air first-quarter net profit rises on passengers, cost cuts

Korean Air Co. said Thursday that first-quarter net profit rose 2.7 percent on gains in international passenger and cargo revenue, as well as cost cuts.
South Korea's largest airline earned 130.8 billion won (US$141 million; euro103 million) in the three months ended March 31, the company said in a statement. It had posted net profit of 127.3 billion won a year earlier.
Sales during the quarter rose 10.7 percent to 2.03 trillion won (US$2.18 billion; euro1.61 billion) from 1.83 trillion won a year earlier, Korean Air said.
International passenger revenue grew 19.3 percent in the first quarter to 1.09 trillion won (US$1.17 billion; euro863 million), Korean Air said.
It said domestic revenue fell 4.3 percent on further restructuring of routes.
Korean Air operates 400 passenger flights a day to 112 cities in 36 countries, including London, Rome, Los Angeles, New York, Toronto, Moscow, Tokyo, Cairo, Istanbul, Sydney, Shanghai, Mumbai and Ulan Bator, the capital of Mongolia.
The carrier, which is the world's largest international cargo airline, said shipments leaving South Korea extended declines due to the strength of the South Korean won currency, and to companies relocating factories outside the country.
However, Korean Air said overall traffic gained 11.9 percent on strong demand in Asia, with sales rising 0.6 percent.
Operating profit, or sales minus the cost of goods sold, surged 66 percent from the year before to 151.4 billion won (US$163 million; euro120 million).
"The growth was a result of calculated expansion, yield improvement, stringent cost control and effective risk management," Korean Air President Lee Jong-hee said in the statement.
Shares in Korean Air, which released earnings results about 90 minutes into morning trading, had risen to 3 percent to 46,250 won (US$50; euro37) around midday.


Updated : 2021-05-16 02:41 GMT+08:00