Korean Airlines swings to black in Q3

Published : Oct 25, 2016 - 10:35 Updated : Oct 25, 2016 - 19:09

Korean Airlines Co., South Korea's top air carrier, said Tuesday that it swung to the black in the third quarter of the year, from a year earlier, largely thanks to lower oil prices and increased passengers.

Net profit reached 428 billion won ($376 million) in the July-September period, compared with a loss of 510 billion won a year earlier, the company said in a regulatory filing.

Sales increased 4.7 percent on-year to reach 3.06 trillion won over the cited period, while operating income reached a record high of 448 billion won, up 35 percent from a year earlier.

The airline attributed the record third-quarter business results to lower oil prices and increased passengers.

Korean Airlines, the largest shareholder of embattled shipper Hanjin Shipping Co., said its cumulative losses stood at 825 billion won in the first nine months of the year, and reflected the losses on its balance sheet.

Aided by its record operating income, its debt ratio fell to 917 percent at the end of September, from 1,109 percent at the end of June.

Korean Airlines stressed that it would not provide additional assistance to Hanjin Shipping in the future, adding that it would seek to improve its financial soundness. (Yonhap)