Korean Air Lines Co., Ltd. : Korean Air Swings To 1Q Net Loss As Weaker Won, Fuel Expenses Raise Costs
05/03/2012| 01:05am US/Eastern
Korean Air Lines Co. (003490.SE) said Thursday it swung to a net loss in the first quarter due to lower foreign-exchange translation gains and a weaker won, which drove up fuel expenses.
For the three months ended March 31, South Korea's flag carrier shifted to a consolidated net loss of KRW67.2 billion (US$59 million) from a net profit of KRW270.9 billion a year earlier, the company said in a statement.
Jet fuel expenses jumped 22% to KRW1.210 trillion in the January-March quarter from KRW995 billion in the year-ago period. The unit price rose 15% to $133 per barrel from $116 a year earlier.
Foreign-exchange translation gains plunged 28% to KRW146.7 billion from KRW204.6 billion, due to the won's weakness against the greenback, the statement said. Dollar-denominated debts rose 3.3% on quarter to $12.4 billion at the end of March, it added.
The dollar strengthened to KRW1,137.80 in the first quarter from KRW1,107.20 a year earlier.
Korean Air posted a first-quarter operating loss of KRW98.9 billion, reversing from an operating profit of KRW162.9 billion a year earlier. Sales rose 6.3% to KRW2.998 trillion from KRW2.821 trillion.
-By Kyong-Ae Choi, Dow Jones Newswires; 822-3700-1903; email@example.com