Korean Air Cargo’s unlucky 13
20 / 10 / 2011
KOREAN Air’s outbound cargo shipments plummeted 13 per cent during the third quarter because of falling IT markets.
Sluggish demand from Europe and the US combined with fluctuating currency accelerated the decline.
South Korea’s flagship carrier reported a net loss of KRW524.3 billion (US$458 million) for the three months ending 30 September, compared with a net profit of KRW550.7 billion ($480 million) in the same period last year.
The airline’s performance was hurt by a 34 per cent surge in jet-fuel expenses. Fuel cost in the July-September rose to KRW1.217 trillion ($1.1 billion), up from KRW908.5 billion ($972 million) a year earlier. The average price of jet fuel in the period jumped 42 per cent to $131 a barrel from $92.
The company posted overall foreign-currency translation losses of KRW771.2 billion ($672 million) in the third quarter, compared with a gain of KRW345.2 billion ($379.3 million) a year earlier.