South Korea: Airlines to record worst earnings slump amid pandemic

South Korea’s airline industry is likely to record its worst performance in Q1 with the dismal situation continuing in the near future. The nation’s largest airline Korean Air, which will announce its Q1 earnings next week, is expected to post an operating loss of around 240b won ($195m), the first red in 18 quarters since 2015, according to industry watchers. Passenger traffic is expected to shrink around 30% on-year. Asiana Airlines, which posted an operating loss of 368b won last year, is also forecast to see around 300b won loss in the January-March period. Low-cost carriers are also deeply affected. All the domestic LCCs, including Jeju Air, T’way Air and Jin Air, are predicted to post more losses. Industry watchers predicted the worsening performance of airlines will begin in earnest in Q2. Korean Air’s operating loss may reach as much as 500b won in Q2 as the international flight rate, which accounts for 94% of passenger sales, stands at only 10%, according to industry sources. T’way and Jeju Air’s operating losses are also expected to be 50.6b won and 68.8b won, respectively. <br/>