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Biz News Korea(Eng)
Korean Air Q1 OP dips 40.8% on surging fuel prices, net profits from stronger won
- Collected
- 2017.05.12
- Distributed
- 2017.05.15
- Source
- Go Direct
Cho Won-tae, chief executive officer of Korean Air
The nation’s top flag carrier said in a regulatory filing on Thursday that its operating profit on a consolidated basis in the January to March period fell 40.8 percent from a year earlier to 191.5 billion won ($170 million) even as its revenue was more or less unchanged at 2.87 trillion won, down 0.03 percent. The net account returned to the black at 559.2 billion won thanks to the stronger won.
Shares of Korean Air Lines closed Friday at 32,250 won, up 2.06 percent or 650 won from the previous session.
Jet fuel prices jumped 51 percent against a year-ago period to average $65 per barrel in the first quarter, costing the carrier extra 130.8 billion on fuel expense.
“The oil and interest rate conditions have turned unfavorable for our business,” said Cho Won-tae, chief executive officer of Korean Air. The airliner will endeavor to cut costs by deploying fuel-efficient carriers, he said.
Korean Air started operation of the Boeing’s most fuel efficient jet B787-9 in March for domestic flights and from June will include the fleet on international routes. The B787-9 models are made of lightweight carbon fiber composites and designed aerodynamically to improve fuel efficiency by 20 percent compared to other similar sized planes. The flag carrier will up the fleet to 10 B787-9 aircrafts by 2019.
By Kim Jung-hwan
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]