SEOUL – Asiana Airlines Inc., South Korea's second-largest airline, reported a narrowed net loss in the third quarter, primarily due to the strengthening of the Korean won. The company According to Yonhap News Agency, Yonhap News Agency, announced a net loss of 31.2 billion won (US$24.2 million) for the July-September period, a significant improvement from the 172.2 billion won loss in the same period last year.
The company attributed the reduced loss to the strengthening of the won against the US dollar during the quarter. Despite this improvement, Asiana Airlines experienced a 44.8 percent decrease in operating profit to 126.7 billion won, while sales rose 13.1 percent to 1.73 trillion won.
The decline in operating profit was attributed to lower profitability in the cargo business and increased costs associated with expanding international routes. Cargo business sales dropped 47.7 percent on-year to 355.7 billion won. However, the passenger business segment saw a 63 percent increase in sales to 1.29 trillion won, driven by a surge in demand for international travel.