Asiana, Jin Air see strong international traffic growth

South Korean carriers Asiana Airlines and Jin Air continued to enjoy an international recovery in the second quarter, with Jin citing strong Japanese and Southeast Asian passenger markets. Asiana Airlines saw its operating profit decline 48.5% year on year, to W109b ($111m), in the three months to 30 June, although revenues rose 11.3% to W15.7t. The Star Alliance carrier, however, swung to modest net profit of W3.5b, compared with a net loss of W1.17b in Q2 2022, largely due to foreign exchange gains as well as reduced non-operating losses. International ASKs and RPKs both more than doubled year on year, while international load factors rose 3.6 percentage points to 83%. As for domestic traffic, ASKs fell 3% year on year and RPKs fell 6%. Domestic load factors slipped 2 percentage points to 87%. Nonetheless, domestic passenger revenue rose 7% on improved yields. The carrier says that passenger traffic has improved on routes to the Americas, Europe and Japan, although cargo sales have decreased owing to increased competition following the coronavirus pandemic. During Q2, Asiana’s total cargo revenue fell 54% to W376b. Cargo sales fell to the Americas by 58%, to Europe 45%, and to Southeast Asia 55%. International cargo capacity, measured in ATKs, rose 4% year on year, while RTKs dropped 14%. Cargo load factors fell 16 percentage points to 77%, and cargo yields dropped a precipitous 46%. As of 30 June, the carrier had 78 in-service aircraft. Korean Air is in the process of obtaining international regulatory approval for a merger with Asiana. Separately, low-cost operator Jin Air swung to a Q2 operating profit of W17.8b, compared with an operating loss of W15b a year earlier Revenue for the three months to end-June was W259b, more than double the figure a year earlier. <br/>