SEOUL, Feb. 8 (Korea Bizwire) – Korean Air Lines Co., South Korea’s national flag carrier, said Thursday it swung to a net profit in 2017, after posting a net loss a year earlier, on increased passenger demand and foreign-exchange gains.
For the whole year, Korean Air shifted to a net profit of 801.9 billion won (US$737 million) from a net loss of 556.84 billion won in 2016, the company said in a statement.
The net result was attributable to the company’s route diversification, meant to reduce the impact of declining number of travelers to and from China triggered by a diplomatic row, and rise in delivery of high-end semiconductors, the statement said.
The South Korean won’s strength against the U.S. dollar also helped the bottom line. The dollar fell to 1,071.4 won at the end of December last year from 1,208.5 a year earlier, driving up foreign exchange gains, the company said.
Operating profit fell 16 percent to 939.78 billion won last year from 1.121 trillion won a year earlier. Sales rose 3.1 percent to 12.09 trillion won from 11.73 trillion won during the same period, the company said.