Asiana Airlines Reports 2Q Operating Profit of 211.3 Billion KRW... Passenger Recovery Drives Performance

[Asia Economy Reporter Hwang Yoon-joo] Asiana Airlines announced on the 12th that its operating profit for the second quarter of this year, on a separate basis, increased by 123% compared to the same period last year, reaching 211.3 billion KRW. Sales rose 51% to 1.41 trillion KRW, but the company recorded a net loss, turning to a deficit.

Second-quarter cargo business sales amounted to 818.3 billion KRW, up 16% from the same period last year. By region, routes to Europe, Southeast Asia, and China increased by 52%, 20%, and 51% respectively compared to the previous year, driving performance. High value-added products such as electronic machinery and machine parts, semiconductors and manufacturing equipment, and automobiles and parts accounted for more than half of the cargo shipments.

Asiana Airlines explained that it strengthened profitability through attracting charter transport of COVID-19 diagnostic kits and T50 advanced trainer aircraft, adjusting stopover points, and operating flexible routes.

Passenger business sales recorded 504.3 billion KRW, with international routes increasing 459% and domestic routes 59% compared to the same period last year. The surge in international passenger sales appears to be the result of gradually expanding international passenger supply following the easing of domestic and international entry and exit restrictions and the recovery of travel demand.

Sales on routes to Europe, the Americas, and Southeast Asia increased by 1,121%, 523%, and 525% respectively compared to the same period last year, highlighting a recovery centered on long-haul and Southeast Asian routes.

Asiana Airlines resumed flights on routes to Paris, Rome, and Hawaii in the second quarter, expanding international flights by 39 times per week compared to the previous quarter. In preparation for economic uncertainties in the second half of the year, Asiana Airlines plans to secure cargo demand in advance and review flight schedules. It also plans to increase flights mainly on routes where passenger demand has risen.