Asiana Airlines Reports 295.1 Billion Won Operating Loss in Q2 Due to Cargo Business Sale

Oil Prices and Exchange Rates Stabilizing in Q3, Demand Recovery Expected

"Expanding Japan Routes and Increasing Cargo Volume to Improve Performance"

Asiana Airlines recorded an operating loss of nearly 300 billion won due to the sale of its cargo business and the sharp increases in fuel prices and exchange rates.

Asiana Airlines A321NEO. Asiana Airlines

Asiana Airlines announced on August 13 that its revenue for the second quarter of this year was 1.547 trillion won, with an operating loss of 295.1 billion won.

The company's revenue decreased by 128.6 billion won compared to the same period last year, primarily due to the sale of the cargo business.

Passenger business revenue reached 1.2809 trillion won, rising by 163.3 billion won (15%) year-on-year. Meanwhile, cargo business revenue fell by 256.5 billion won to 114.7 billion won compared to the previous year, largely because of the divestment of the cargo division in August of last year.

Net income for the current period turned negative, reaching a deficit of 328.6 billion won, as the exchange rate at the end of the second quarter rose by 107 won to 1,542 won compared to the end of the previous year, leading to increased foreign currency translation losses.

In the third quarter, performance is expected to improve thanks to the stabilization of oil prices and exchange rates, as well as the impact of the peak summer travel season.

Asiana Airlines plans to further strengthen its overseas departure connecting sales, which are seeing growing demand. Additionally, the company will begin regular flights on the Kobe, Japan route starting in September—previously popular for chartered flights—in order to enhance profitability, and it will also increase the frequency of its Fukuoka route to two flights daily.

A representative from Asiana Airlines stated, "Belly cargo (cargo transported in the belly of passenger aircraft) is expected to continue its upward trend, driven by the traditional cargo peak season at the end of the third quarter and strong demand for high value-added goods such as those for the semiconductor and artificial intelligence (AI) industries. We aim to proactively secure major shippers' cargo in advance to maintain a stable cargo volume, and will focus on attracting high value-added cargo during the peak season to maximize performance in the second half of the year."

This content was produced with the assistance of AI translation services.