Airlines Report Dismal Earnings
16 November, 2019
Seven out of eight Korean airlines reported losses in the third quarter of this year. A steep decline in the number of travelers to Japan due to a boycott here had a major impact.
Only Korean Air made a profit, posting sales of W3.28 trillion and an operating profit of W117.9 billion, but sales fell 3.7 percent on-year and operating profit plunged 70 percent (US$1=W1,171).
The flag carrier blamed the Korea-Japan conflict, political tensions in Hong Kong, a weak won and the rising minimum wage.
Moribund Asiana Airlines suffered a W57 billion operating loss compared to an operating profit of W97.1 billion in the same period last year. Sales fell 6.8 percent to W1.84 trillion. Asiana also suffered a W124.1 billion operating loss in the previous quarter.
Budget airline Jeju Air suffered a W17.4 billion operating loss, compared to a W37.8 billion operating profit in the third quarter last year. Jin Air and Air Busan also suffered operating losses of W13.1 billion and W19.5 billion.
T’way Air last week reported an operating loss of W10.2 billion. Eastar Jet and Air Seoul, which are unlisted and not obligated to reveal their earnings, apparently shifted to losses as well.
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