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Korean Air consolidated operating profit $247.3 million

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Staff writer ▼ | November 17, 2015
Korean Air reported a consolidated operating profit of 289.5 billion won ($247.3 million) for the three months ended September.
Korean Air
Korean Air   The improvement came despite falling revenue
This is up from a 240.7 billion won a year earlier and exceeding the expected 258 billion won.

The improvement came despite falling revenue from a sharp drop in passenger traffic that followed an outbreak of Middle East respiratory syndrome (MERS) in May.

Korean Air suspended service to major Asian destination for some weeks before resuming flights in August.

Korean Air's bottom line remained in negative territory in the third quarter, reflecting the won's weakness against the dollar, which inflated the value of its offshore debt and increased interest costs.

The net loss widened to 492.9 billion won from a year-earlier 392 billion won, and revenue was down 6%, to 2.97 trillion won ($2.54 billion) from 3.17 trillion won.

Korean Air's revenue from long-distance service has declined with the rise of low-cost carriers. Low-cost travel now accounts for more than a quarter of Asia's air passenger traffic, crimping demand for full-service carriers even as international traffic remains strong.

The fight over economy-class customers has become more intense for premium carriers as demand for first- and business-class travel remains lackluster.