| Carriers - Korean reports massive losses in 2011 |
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Flag carrier Korean Air Lines yesterday reported massive losses last year, despite its fourth-quarter net profit rising due to foreign exchange gains. The world’s second-largest cargo carrier by freight volume after Cathay Pacific said the loss was mainly due to a surge in jet fuel expenses, a weaker local currency and sluggish cargo demand amid economic uncertainties around the globe. The carrier said in a statement that, including contributions from affiliates, in 2011 it had a net loss of W98.2 billion (US$87 million), compared with a net profit of W623.9 billion a year earlier. Consolidated operating expenses, including spending on jet fuel, rose 14% on the previous year, as prices increased to an average of $126 a barrel compared with $121 a barrel, while the dollar strengthened against the Korean won. Full-year consolidated operating profit plunged 63% to W459.8 billion from W1.23 trillion, while sales were up 5.4% at W12.26 trillion from W11.64 trillion. The firm’s Q4 net profit had surged to W146.1 billion from W24.4 billion a year earlier as the company posted W226.6 billion in foreign exchange gains. However, cargo traffic slumped 6.7% in the quarter, but the airline said in a statement it expected shipments to be boosted this year by South Korea’s free-trade agreement with Europe and the London Olympic Games. In addition, it said it aimed to become more profitable by exploring new markets and was considering building a cargo network in Latin America, with Brazil as a hub. Source: IFW, Feb 03, 2012 |
