KOREAN AIR (KAL) plummeted into losses over the first half of the year, largely as a result of massive foreign-exchange losses from the steady rise of the US dollar so far this year.
The South Korean national carrier made a net loss of 254 billion won ($309 million) for the first half of 1995, against a profit of 77.5 billion won a year ago. This came despite an 8% increase in revenue to around 1.7 trillion Won. The airline blames the poor performance on a 159 billion Won loss from the cost of exchanging foreign-currency debts into Won. This was compounded by heavy depreciation charges, following a change in the way that KAL values its assets.
Although the valuation added to depreciation, it also resulted in a 741 billion Won gain in book values, which the airline says will help to reduce its debt ratios.
KAL's traffic figures nevertheless continued to grow, with overall load factors coming close to 70%. The airline carried a total of 11.4 million international and domestic passengers in the first six months, an increase of 8.3%.
Source: Flight International
