Korean Air first quarter net profit up 14pc to US$176.6 million

KOREAN Air has posted a year-on-year 13.9 per cent first quarter net profit increase to KRW190 billion (US$176.63 million) on the back of foreign currency gains.


Operating revenues were up 6.3 per cent to KRW2.72 trillion in the first three months, to which cargo contributed 31.4 per cent and passengers contributed 53.7 per cent, together generating and operating profit of KRW145 billion.


Demand for world cargo "progressed steadily" in the first quarter, said the company, with its capacity up 0.5 per cent to 3,017 million AFTK while traffic dropped 1.6 per cent to 2,277 million FTK.


South East Asian and Japanese cargo routes were surpassed performances year on year. Meanwhile, transit cargo traffic recorded significant growth, particularly, on outbound routes to Europe (up 17 per cent), south east Asia (up four per cent) and Japan (up three per cent).


Korean Air attributed traffic growth to international routes, including China, Japan, South East Asia and the Americas. The carrier also saw a surge of six per cent in Korean-inbound traffic and transit passenger volume during the reporting period.


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


It said the world cargo business is expected to grow further in the coming months, mainly because of the increasing transport of emergency relief materials to Japan. "Extra cargo traffic is expected to be made as alternative parts supplier outside Japan may replace Japanese manufacturers to fill the gaps in inventory storage. Traffic of IT products is expected to slow down, while the strong flow of auto parts and machinery is expected to continue during the current year," the statement said.
(Source:http://www.schednet.com)