Asiana Airlines Posts KRW 179 Billion Q3 Operating Loss; Swings to Net Profit

Improved passenger profitability and higher revenue

Higher fuel, maintenance and integration costs

Expanded codeshare services and Starlink-equipped fleet

Asiana Airlines achieved revenue growth on the back of strong passenger demand during the summer peak season, but posted an operating loss due to higher fuel and maintenance costs and increased integration-related expenses. However, foreign currency translation gains resulting from the weaker exchange rate helped it return to net profit.

Asiana Airlines A350. Asiana Airlines

Asiana Airlines said on November 12 that, on a non-consolidated basis, it recorded revenue of KRW 1.5262 trillion, an operating loss of KRW 179 billion and net income of KRW 179.4 billion in the third quarter of this year.

Revenue increased by KRW 61.9 billion year on year, driven by strong performance in the passenger business. Third-quarter passenger revenue totaled KRW 1.2671 trillion, up KRW 111.6 billion, or 9.7%, from the same period last year. The airline improved passenger yield by 18.1% by expanding short-haul, high-yield routes and adding flights to European destinations during the summer peak season. Its load factor also rose by 1.2 percentage points. Meanwhile, cargo revenue fell by KRW 47.4 billion year on year to KRW 96.6 billion, affected by the sale of its freighter business unit in August last year.

Operating results showed a loss of KRW 179 billion, down KRW 3.3 billion year on year, due to persistently high oil prices, increased investment in safety, enhanced customer service and integration-related expenses. The losses were driven by ▲a KRW 147.2 billion increase in fuel costs ▲more maintenance to ensure safe operations ▲improvements to in-flight meal menus, cabin interiors and lounges to enhance customer service.

Net income came to KRW 179.4 billion, as a decline in the closing exchange rate at the end of the third quarter generated KRW 460.4 billion in foreign currency translation gains. This was an increase of KRW 483.7 billion from the same period last year, marking a return to profitability.

Asiana Airlines expects external volatility, including fluctuations in oil prices and exchange rates, to continue as the industry enters the seasonally slow fourth quarter. Accordingly, it plans to focus its company-wide capabilities on the stable launch of an integrated airline and ensure customer convenience throughout the integration process by ▲allocating resources efficiently and minimizing losses through one-off suspensions of flights on some routes where profitability has deteriorated ▲strengthening its sales network by expanding codeshare services with Korean Air ▲enhancing fleet competitiveness by continuing to expand the number of aircraft equipped with Starlink ▲broadening the ways customers can use their miles.

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