Asiana more than doubles profits in Q2

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Asiana more than doubles profits in Q2

Asiana Airlines Inc., Korea’s second-largest carrier, reported that profits more than doubled in the second quarter as a stronger won helped reduce fuel bills and cut debt.
Net income in the three months ended June 30 was 38 billion won ($41 million), compared with 16 billion won a year earlier, the airline said in a regulatory filing yesterday. Sales rose 2.1 percent to 861.2 billion won.
The gain in the Korean currency in the last quarter helped Asiana slash dollar-denominated fuel expenses and cut debt size. Economic growth has boosted passenger traffic in Asia’s third-largest economy.
“Net income as well as operating profit should improve from the second half helped by firm demand,” said Jee Heon-seok, an analyst at NH Investment & Securities Co.
The won’s gain against the dollar contributed 17.5 billion won to second-quarter earnings, almost double the 8.9 billion won in the year-earlier quarter, the airline said on its Web site. The strong won helps raise the airline’s earnings because it buys dollars to pay for fuel, its biggest expense.
Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 7.2 percent to 20.6 billion won on lower profit from carrying cargo, the airline said in the filing. Its passenger traffic, or the number of paying travelers multiplied by the distance flown, rose 6.6 percent in the second quarter from a year earlier, and cargo traffic increased 1.2 percent, the carrier said. Bloomberg
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