This file photo provided by Korean Air shows a B787-9 passenger jet.
SEOUL, May 3 (Korea Bizwire) — Korean Air Co., South Korea’s biggest carrier by sales, said Wednesday its first-quarter net profit fell 35 percent from a year earlier on higher operating costs.
Net profit for the three months ended in March fell to 355.42 billion won from 543.85 billion won (US$406 million) during the same period of last year, the company said in a statement.
“Travel demand is recovering amid eased COVID-19 virus curbs. But an increase in operating costs, including higher jet fuel prices, weighed on the quarterly bottom line,” the statement said.
Operating profit plunged 47 percent to 414.99 billion won in the March quarter from 788.45 billion won a year ago.
Sales were up 14 percent to 3.19 trillion won from 2.8 trillion won.
The financial results are parent-based figures, not consolidated ones.
Looking ahead, the national flag carrier said passenger travel demand could further improve in the second quarter as most of the pandemic-related restrictions are expected to be lifted.
As for the cargo business, the company said it will preemptively respond to changing demands in the markets and win new deals amid a global economic slowdown.
(Yonhap)
