Korean Air predicted to have turned profit on strong logistics demand

The country's top airline operator is expected to post an operating profit of 76.6b won ($68.3m) for the January-March period, compared with a loss of 82.3b won posted a year earlier, according to a poll released by Yonhap Infomax. Sales, meanwhile, were estimated to have decreased 26% over the period to 1.7t won. Industry watchers attributed the robust outlook to the strong performance of Korean Air's logistics business. "The amount of cargo handled by Korean Air reached a record high amount last month," NH Investment & Securities said in its report. "The disturbed travel at the Suez Canal led to more demand for air shipping services." Asiana Airlines, which awaits a merger with its bigger rival Korean Air, is expected to post a profit in the first quarter, compared with the previous year's loss of 70.3b won. Korea's low-cost carriers, on the other hand, are estimated to have logged sluggish earnings over the first quarter due to their strong dependence on passenger travel.<br/>