Asiana Airlines’ third-quarter revenue tops 1.5 trillion won; operating loss narrows slightly

[Financial News] Asiana Airlines’ third-quarter revenue topped 1.5 trillion won. Its operating loss also narrowed slightly.
Asiana Airlines said on the 12th that its third-quarter revenue reached 1.5262 trillion won, up 61.9 billion won from the same period a year earlier. Despite persistently high oil prices, its operating loss narrowed by 3.3 billion won to 179 billion won.
The passenger business drove revenue higher, recording 1.2671 trillion won, an increase of 111.6 billion won from the same period a year earlier. Asiana Airlines said the expansion of profitable short-haul routes helped boost revenue. Profitability on long-haul routes improved significantly as the airline added flights on European routes during the summer peak season.
Revenue from the cargo business fell by 47.4 billion won year over year to 96.6 billion won, as the company sold its freighter business division in August last year.
The strong performance of the passenger business boosted revenue and helped narrow the operating loss. It fell by 3.3 billion won from the same period last year to 179 billion won. Analysts said the airline had held up well, considering rising costs due to high oil prices, preparations for integration with Korean Air, and increased investment in safety. Fuel costs in particular rose by 147.2 billion won.
Net income turned to a profit of 179.4 billion won, up 483.7 billion won from the net income recorded in the third quarter last year. The closing exchange rate fell from 1,402 won to 1,358 won, generating foreign currency translation gains of 460.4 billion won.
The fourth quarter is typically a seasonal off-peak period, and with high oil prices and exchange-rate volatility continuing, strong results will be difficult to achieve. Asiana Airlines plans to reduce losses by avoiding one-off operations on routes whose profitability has deteriorated, while defending profitability by strengthening its sales network through expanded codeshare flights with Korean Air.
With the launch of the integrated Korean Air, scheduled for December 17, approaching, the airline plans to step up preparations, including expanding the ways customers can use their miles, while also increasing the number of aircraft types equipped with Starlink to improve its competitiveness.

[email protected] Kim Yun-ho Reporter