SEOUL, Nov. 14 (Yonhap) — Korean Air Co., South Korea’s leading carrier, said Tuesday its third quarter net profit fell 2 percent on-year due to increased operational costs.
Net profit for the three months ending in September reached 424.5 billion won (US$319.3 million), compared with 431.5 billion won during the same period of last year, the company said in a statement.
Operating profit tumbled 38 percent to 520.3 billion won from 839.2 billion won a year ago. Sales rose 5 percent on-year to 3.86 trillion won from last year’s 3.68 trillion won tally.
The company attributed its weaker performance to the rise in fuel prices and increase in operational costs due to expanded aircraft operations.
Korean Air said sales of its cargo business fell by 51 percent on-year to 915.3 billion due to weakened demand. Sales of the company’s passenger business, however, climbed 76 percent to 2.56 trillion won thanks to the summer vacation season demand.
The company said its forecasts a continued increase in passenger demand in the fourth quarter and expects to restore its pre-COVID seat capacity levels. The airline will work to maximize profits by securing new demand and operating additional special flights, it added.
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