Korean Air's loss narrows in Q1

Korean Air Lines Co., South Korea's top air carrier, said Thursday its loss narrowed in the first quarter of this year from a year earlier on the back of reduced fuel costs and a higher number of passengers.

Consolidated net loss came to 133.1 billion won ($121.95 million) in the January-March period, compared with a 155.76 billion won loss a year earlier, the company said in a regulatory filing.

Sales edged down 0.9 percent on-year to 2.87 trillion won, while operating profit jumped nearly nine times to 189.9 billion won on the back of low oil prices and an increase in passengers, it said.

Shares of Korean Air closed at 43,650 won on the local bourse on Thursday, down 0.91 percent from the previous session.

An overall rise in the number of outgoing passengers helped to narrow its net loss.

The number of passengers who used its flights to Southeast Asian countries logged a 12-percent gain in the first quarter, with the comparable figures for routes to China and Europe increasing by 9 percent and 6 percent, respectively, according to Korean Air.

In addition, plunging global crude oil prices also helped to ease fuel cost burdens, which dropped 23.6 percent on-year in the first three months this year.

The air carrier cast a positive outlook that business will continue to get better down the road.

"The number of passengers is likely to rise in the current quarter, as we expect to see more travelers for the long-weekend holidays in May as well as a rise in demand from honeymooners," a Korean Air official said.

"Our freight business will also be buoyed by the recovery in the U.S. economy as well as the positive effects of the weakening yen against the South Korean currency." (Yonhap)