Asiana Airlines reported an operating loss of 295.1 billion won ($2.95 billion) in the second quarter, impacted by high fuel prices, rising exchange rates, and the sale of its cargo business. While the passenger segment saw growth due to improved load factors and profitability, operational costs hindered overall performance.
The airline's revenue for the second quarter fell 7.7% year-on-year to 1.547 trillion won ($1.54 billion). It recorded an operating loss of 295.1 billion won and a net loss of 328.6 billion won, a stark contrast to the operating profit of 34 billion won reported in the same period last year.
Asiana attributed its losses to the surge in fuel prices and exchange rates due to the ongoing conflict in the Middle East, the sale of its cargo business last August, and costs associated with its merger preparations with Korean Air and enhanced customer service. The end-of-quarter exchange rate for the won against the dollar was 1,542 won, an increase of 107 won compared to the end of last year.
Revenue from passenger operations rose to 1.2809 trillion won, an increase of 163.3 billion won (15%) compared to the previous year. Although aircraft maintenance schedules led to a 2% decrease in supply, the load factor improved by 5 percentage points, aided by expanded international sales. Revenue per passenger also improved by 10%.
In contrast, cargo revenue plummeted to 114.7 billion won, a decrease of 256.5 billion won year-on-year, reflecting the impact of the sale of the cargo division to Air Jet last August.
Looking ahead, Asiana expects improved performance in the third quarter as fuel prices and exchange rates stabilize, coupled with the seasonal boost from summer travel. The airline plans to enhance profitability on its Japan routes, with regular flights starting in September to Kobe and increasing service to Fukuoka to twice daily. In the belly cargo sector, Asiana aims to respond to the traditional peak season for cargo and rising demand for high-value goods such as semiconductors and artificial intelligence (AI) products by the end of the third quarter.
* This article has been translated by AI.
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