Rising fuel costs lead Korean Air to surprise Q1 loss
Korean Air, the nation’s biggest carrier, slumped to a surprise first-quarter loss because of higher fuel prices and a drop in cargo volumes.
The consolidated net loss was 67.2 billion won ($59.5 million) in the three months ended March 31, compared with a 270.9 billion won profit a year earlier, the carrier said in a regulatory filing yesterday. It was forecast to make a 16 billion won profit based on the average of 10 analysts’ estimates compiled by Bloomberg over the last 28 days. Sales gained 6.3 percent to 3 trillion won.
The carrier said first-quarter freight traffic fell 9.6 percent because of rising competition from Chinese airlines.