Korean Air posts Q2 net loss on higher fuel costs
Friday, 15 August 2008
SEOUL, Aug 14, (AFP): South Korea's main flag carrier Korean Air said today that it posted a net loss in the second quarter due mainly to higher fuel costs and a weaker won against the dollar.
The airline recorded a net loss of 289 billion won (278 million dollars) in April-June compared with a loss of 214 billion won a year earlier. Sales increased 17.5 per cent to 2.48 trillion won. The company posted an operating loss of 116 billion won in the second quarter compared to an operating profit of 75.4 billion won a year earlier.
The airline said the cost of jet fuel rose nearly 90 per cent this year.
In a bid to counter higher fuel costs, it has cut international routes and increased surcharges on domestic flights.
The airline recorded a net loss of 289 billion won (278 million dollars) in April-June compared with a loss of 214 billion won a year earlier. Sales increased 17.5 per cent to 2.48 trillion won. The company posted an operating loss of 116 billion won in the second quarter compared to an operating profit of 75.4 billion won a year earlier.
The airline said the cost of jet fuel rose nearly 90 per cent this year.
In a bid to counter higher fuel costs, it has cut international routes and increased surcharges on domestic flights.