Asiana Airlines, Despite Record High Sales... Operating Profit Down 45% Year-on-Year

Asiana Airlines posted its highest-ever sales last year, but operating profit declined due to factors such as a drop in cargo freight rates.

Asiana Airlines announced on the 15th that its sales and operating profit for last year were preliminarily estimated at KRW 6.5321 trillion and KRW 400.7 billion, respectively.

Regarding the merger of Korean Air and Asiana Airlines, discussions on the sale of Asiana Airlines' cargo business are scheduled at the board meeting on the 2nd. An Asiana Airlines aircraft is parked at Gimpo Airport in Gangseo-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Sales increased by 16.0% compared to the previous year, marking a record high, while operating profit decreased by 45.4%. Net profit for the period was recorded at KRW 23.9 billion.

By business segment, passenger business sales rose 90% year-on-year to KRW 4.2892 trillion.

Asiana Airlines explained that its strategy to expand operations on all international routes was effective as overseas travel demand recovered with the endemic. The airline operated charter flights on various routes such as Melbourne (Australia) and Chiang Mai (Thailand) to target new tourism demand, and increased supply on high-demand routes to Japan.

On the other hand, cargo business sales were recorded at KRW 1.6071 trillion, down 46% from the previous year.

Asiana Airlines explained that after the endemic, air cargo demand decreased while supply increased, causing freight rates to fall sharply.

The airline added that it has been striving to respond to uncertain external conditions by expanding partnerships with global shippers and partners to secure fixed demand, and by increasing belly cargo supply on routes with growing passenger capacity.

Asiana Airlines’ sales in the fourth quarter of last year were KRW 1.7817 trillion, up 15.1% from the same period last year.

Operating profit, which has been positive for 11 consecutive quarters, was KRW 72.5 billion, down 37.5% year-on-year, and net profit turned positive to KRW 115.2 billion compared to the previous quarter.

An Asiana Airlines official said, "We expect intensified competition in the global aviation market and continued uncertainty in the external environment this year as well," adding, "We plan to respond by securing new tourism demand and operating aircraft efficiently."