Korean Air Q2 net more than triples on recovering travel demand

Korean Air Lines said Thursday its Q2 net profit more than tripled from a year earlier on robust cargo deals and recovering travel demand. Net profit for the three months ended in June jumped to 450.41b won (US$344m) from 129.96b won during the same period of last year, the company said. "On top of strong cargo demand amid the extended COVID-19 pandemic, recovering demand on international passenger routes gave a boost to the quarterly bottom line," the statement said. Operating profit also more than tripled to 735.87b won in Q2 from 196.91b won a year ago. Sales jumped 71% to 3.33t won from 1.95t won during the same period. Sales in the passenger business jumped more than four times to 874.2b won in the June quarter from 214.6b won a year ago. Sales in the cargo division rose 44% to 2.17t won from 1.51t won, the statement said. The national flag carrier shifted to foreign exchange losses worth 194b won in Q2 from foreign exchange gains of 11b won a year ago due to a weak won, it said. The dollar rose to an average of 1,259.57 won in the second quarter from 1,121.23 won a year ago, according to the Bank of Korea. A weak won drives up the carrier's dollar-denominated debts when translated into the local currency and pushes up jet fuel costs.<br/>