Korean Air’s quarterly profit defies coronavirus travel slump
Korean Air Lines provided some rare positive news for the devastated global aviation industry Thursday, reporting a quarterly profit after flying planes loaded with products from South Korean technology giants to homebound consumers around the world. The carrier’s operating profit was 148.5b won ($125m) for the April-June period. Cargo sales climbed 95% from a year earlier to 1.23t won. Asiana could follow suit with an operating profit of 43.7b won when it reports next week, according to the average estimate of analysts tracked by Bloomberg. The profit comes as other airlines are reporting record losses; slashing routes, jobs and salaries; or collapsing altogether because of the impact Covid-19 has had on travel. The crisis has forced some carriers to retrofit their planes to haul more cargo and generate much-needed cash from surging airfreight rates. “The cargo business has come to the rescue yet again when things are going bad,” said Um Kyung-a, an analyst at Shinyoung Securities. “Countries will be in need of goods to restart their economies as many emerge from shutdowns due to the outbreak.”<br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-08-07/sky/korean-air2019s-quarterly-profit-defies-coronavirus-travel-slump
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Korean Air’s quarterly profit defies coronavirus travel slump
Korean Air Lines provided some rare positive news for the devastated global aviation industry Thursday, reporting a quarterly profit after flying planes loaded with products from South Korean technology giants to homebound consumers around the world. The carrier’s operating profit was 148.5b won ($125m) for the April-June period. Cargo sales climbed 95% from a year earlier to 1.23t won. Asiana could follow suit with an operating profit of 43.7b won when it reports next week, according to the average estimate of analysts tracked by Bloomberg. The profit comes as other airlines are reporting record losses; slashing routes, jobs and salaries; or collapsing altogether because of the impact Covid-19 has had on travel. The crisis has forced some carriers to retrofit their planes to haul more cargo and generate much-needed cash from surging airfreight rates. “The cargo business has come to the rescue yet again when things are going bad,” said Um Kyung-a, an analyst at Shinyoung Securities. “Countries will be in need of goods to restart their economies as many emerge from shutdowns due to the outbreak.”<br/>
