Asiana profit fell 81% in Q3 due to less demand in China
Asiana Airlines said Thursday its third-quarter net profit plunged 81 percent, hit by lower demand from China.Its heavy dependence on travel demand from China and other Asian countries resulted in poor performance in the July-September period.
Net profit for the three months nosedived to 28.8 billion won ($26 million) from 152.6 billion won a year earlier, the company said in a statement.
Operating profit dropped 22 percent to 118.9 billion won in the third quarter from 151.6 billion won a year ago. Sales rose 4.8 percent to 1.631 trillion won from 1.555 trillion won during the same period, it said.
Local airlines have suffered sharp declines in their third-quarter earnings after China banned the sale of group travel packages to Korea from mid-March in retaliation against the deployment of an advanced U.S. missile defense system.
In the January-October period, Asiana’s net profit plummeted 71 percent to 50.11 billion won from 170.42 billion won in the same period the previous year. Operating profit fell 13 percent on-year to 188.06 billion won on sales of 4.58 trillion won, which were up 6.5 percent from a year earlier.
YONHAP
with the Korea JoongAng Daily
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