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Korean Air recorded a consolidated net loss of KRW175b (US$149m) for Q1, up from a KRW133 loss in the same period a year earlier. The net loss was due mainly to impairment costs related to its financial exposure to struggling sister company Hanjin Shipping. Korean Air achieved an operating profit of KRW323b for the period, which was a record for the carrier and an increase of KRW133b from the previous year. Consolidated revenue was essentially flat at KRW2.9b. Korean’s international passenger yield in the quarter declined 9.6% when calculated in US dollars, and was down 1.1% in terms of Korean won. Domestic passenger yield dropped 10.8% in dollars and 2.5% in won. Fuel costs fell by more than 40% in the quarter, although rises in other costs meant total expenses were down by just 4.8%. <br/>

Delta Air Lines is aiming to be the first major airline to boost its fares this year as it faces rising fuel costs and revenue headwinds. The airline said it will cut expansion plans, including going back on its plans to add new flights in the second half this year as well as pushing back delivery of new planes by 1 to 2 years. Delta’s passenger capacity will grow at about 2.5% in Q4 of this year, down from about 4% growth in the first 3 quarters of 2016. International capacity will remain relatively flat. The moves are part of a larger plan to stop airfares from falling and help reverse that trend altogether. Slowing capacity will help boost its airfares over the coming months, said Delta CFO Paul Jacobson Tuesday. <br/>