Asiana Airlines reports 172.3 billion won net loss in third quarter

An Asiana Airlines plane takes off from Incheon International Airport [NEWS1]

Asiana Airlines reported a net loss of 172.3 billion won ($130 million) in the third quarter, compared to a net loss of 208.4 billion won in the same period the previous year due to weak cargo business and the weak won.

The figure fell short of the analyst expectations of a 13-billion-won net profit compiled on FnGuide.

Asiana Airlines blamed foreign currency exchange losses due to the strengthening dollar.

It reported revenue of 1.5 trillion won, up 47.2 percent on year but falling short of a 1.7-trillion-won estimate, and an operating profit of 229.3 billion won, up 43.1 percent on year.

Asiana Airlines said sales from its passenger flight business helped, jumping 326 percent on year to 742.2 billion won as international travel demand rebounds. According to Incheon International Airport Corporation, there were 5.5 million passengers getting on and off at Incheon International Airport in the third quarter, jumping 499.5 percent on year.

By region, sales for European flight surged 1,353 percent on year, Southeast Asian flights 695 percent and American flights 261 percent.

The carrier said it resumed service to Beijing, Istanbul and Barcelona in response to rising demand. Its A350 and A330 passenger aircraft, remodeled to cargo planes during the pandemic, were retrofit to passenger planes to carry more passengers.

Despite passenger flights doing well, sales from its cargo business fell 9.8 percent on year to 680.2 billion won. The carrier cited less demand for transport due to inflation and falling ocean freight rates. With more passenger flights, increasing competition due to more belly cargo space has also been bringing down sales.

The company’s debt ratio in the third quarter was 3,782 percent, up 113.7 percentage points from the previous year. Still struggling from debt, Korean Air Lines is planning to acquire the carrier, waiting approval from five jurisdictions: the United Kingdom, European Union, China, Japan and the United States.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]