Asiana Airlines reports a steep profit drop in the second quarter
Asiana Airlines reported a 63.4 billion won ($55.1 million) net profit in the second quarter, down 45.4 percent.
Sales were up 14 percent to 933.5 billion won.
Cargo transportation helped boost sales.
Sales generated from cargo transportation rose 11 percent on year to 708.2 billion won, a quarterly record, according to Asiana Airlines on Tuesday.
Demand for cargo transportation to the United States jumped 13 percent, to Southeast Asia 33 percent and Japan 23 percent.
Electric devices and medical supplies, like masks, fresh produce and eggs were some of the items carried on flights.
Asiana Airlines said that unpaid leave contributed to the profit.
“We will do our best to prepare for recovery of travel demand as the vaccination rate increases and a travel bubble has been executed,” said a spokesperson for the airline in a statement.
On the same day, Jin Air, a budget carrier, reported 50.4 billion won in net loss in the second quarter.
The loss was down 15 percent from the same quarter a year earlier on sales up 173 percent to 63.4 billion won in the second quarter.
Jin Air said sales rose and loss was reduced in the second quarter due to rise in demand for domestic flights.
It said recovery in travel demand could be delayed due to the resurgence of Covid-19.
Recovery in travel demand is expected to be slow for both domestic and international flights in the second half because of “intensified competition amongst airlines that is pushing down domestic flight fares,” said Jeong Yeon-seung, an analyst at NH Investment & Securities. “Though some international routes have been recovered like Guam and Saipan, boarding rate is low at around 30 percent.”
Jeong added, “Cargo transportation demand is projected to stay strong throughout the end of the year due to global transportation disruptions caused by [lack of] containers.”
BY JIN MIN-JI [firstname.lastname@example.org]