Asiana's revenue drops 40% in 2020 as net loss remains

Asiana Airlines aircraft parked at Incheon International Airport on Feb. 8. [YONHAP]

Asiana Airlines continued to report losses last year as revenue shrunk 40 percent.

The debt-laden full-service carrier reported 3.56 trillion won ($3.24 billion) in revenue last year, down 40 percent on year, according to its preliminary report released Tuesday.

Its net loss contracted 65 percent to 264.8 billion won, while its operating loss contracted 86 percent to 70.3 billion won during the same period.

Its earnings were affected by Covid-19, which took a toll throughout the year.

The airline’s 325-billion-won in net losses in the fourth quarter of 2019 swung to 165.8 billion won in net profit during the same period last year.

Its earnings were helped by air cargo transportation, as demand for cargo transportation jumped last year as a result of Covid-19, which limited travel and boosted demand for online shopping.

The revenue of Asiana Airlines from air transportation jumped 64 percent on year last year as a result of its “active expansion of supply of air transportation.”

IT products, medical supplies and individual protection equipment were among the popular items that were transported by air to the United States, Europe and Southeast Asia, generating 2.14 trillion won in revenue – the highest on record.

It retrofit two of its passenger aircraft to carry more cargo by air. The company plans to remodel another two carriers for cargo transportation.

The company hopes to report a profit “from passenger recovery as a result of widespread vaccine inoculation,” said a spokesperson for Asiana Airlines in a statement.

Asiana Airlines is currently in the process of being acquired by Korean Air Lines, which also reported on-year net loss and lower revenue last year.

BY JIN MIN-JI [jin.minji@joongang.co.kr]