Korean Air up, Asiana down in Q1 earnings

Korean Air Lines Co., South Korea's largest flag carrier, reaped a record operating income in the first quarter of 2016, while its local rival Asiana Airlines Inc., saw its profit dwindle.

Korean Air's operating profit jumped 70.2 percent to 323.3 billion won (US$274 million) from a year earlier, as demand for its flights was on a steady rise in almost all routes worldwide, the firm said in a regulatory filing. 

Its revenue dropped 0.1 percent to 2.86 trillion won, with net loss totaling 174.9 billion won mainly due to shrunken value in its stake in its troubled affiliate Hanjin Shipping Co.

Company officials attributed the sharp rise in operating profit partly to efforts to cut fuel costs and raise efficiency in management.

In contrast, Asiana's first-quarter operating profit fell 23.7 percent on-year to 58.7 billion won. Its sales increased 4.9 percent to 1.4 trillion won, but net profit slipped 25.5 percent to 44.4 billion won.

Asiana's passenger line fared relatively well, but its cargo unit suffered woes as demand for the U.S. business fell significantly. (Yonhap)