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(2nd LD) Korean Air turns to Q2 profit on stronger won

Sun. August 16, 2009; Posted: 01:53 AM
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SEOUL, Aug 15, 2009 (Asia Pulse Data Source via COMTEX) -- KRNRF | Quote | Chart | News | PowerRating -- Korean Air Lines Co., South Korea's biggest air carrier, said Friday it swung to a profit in the second quarter on foreign exchange gains and cheaper fuel costs, reversing six consecutive quarterly losses.

Net profit stood at 78.5 billion won (US$63.7 million) during the April-June period, compared with a deficit of 288.9 billion won the same period last year, the company said.

Sales, however, plunged 16.2 percent on-year to 2.75 trillion won, with its operating loss widening to 127.3 billion won from a deficit of 116.4 billion won a year earlier, it said.

The improved bottom line came as a stronger won, which rose nearly 9 percent against the U.S. dollar in the second quarter, cut the value of its dollar debts, Korean Air said in an e-mailed statement. The carrier suffered operating losses, however, as the global economic downturn coupled with an outbreak of influenza A cut into demand for air travel, the company said.

Shares of Korean Air closed at 45,500 won on the Seoul bourse, up 0.44 percent from Thursday's close.

The airline said its third-quarter earnings could gain ground as a stabilizing local economy and strengthened local currency bolsters travel demand.

For full details for KRNRF click here.

    


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