Korean Air A380
Korean Air has posted a net loss for 2013 of KRW385 billion ($362.1 million), a year-over-year drop of KRW641 billion from 2012. Full-year revenue fell 4% year-over-year to KRW11.85 trillion. Operating expenses also fell (-2%) to KRW11.87 trillion, resulting in an operating deficit of KRW18 billion for the year, reversing the company’s operating profit of KRW229 billion reported for 2012.
The South Korean flag carrier is reporting a fourth-quarter 2013 net loss of KRW58 billion, a difference of KRW198 million from fourth-quarter net profits in 2012. Fourth-quarter operating revenue slipped 0.3% year-over-year to KRW2.98 trillion; operating expenses were down 1.9% to KRW2.96 trillion, producing an operating profit of KRW20 billion, reversing an operating loss of KRW30 billion reported in the fourth quarter of 2012.
Korean Air’s full-year international traffic fell 0.4% to 65.9 billion RPKs; capacity grew 1.3% to 85.6 billion ASKs, producing a load factor of 77%, down 1.3 points year-over-year. Yield for Korean Air’s international passengers fell 2.1% year-over-year to $0.093. Cargo demand fell 5.7% year-over-year to 7.8 billion FTKs; cargo capacity decreased 6.4% to 10.1 billion AFTKs, resulting in a cargo load factor of 77% for 2013, a 0.6 point increase year-over-year.
In its fourth-quarter results and 2014 business plan statement, the company said it intends to “increase [passenger] profit by strengthening high class sales and expanding charter flights to new destinations.” The company is targeting an operating profit of KRW640 billion for 2014.
For cargo, the company expects “to secure new sources of income by developing niche markets for passenger aircraft cargo and transporting medicine, medical supplies, agro-fisheries products and direct overseas purchase products.”
Korean Air closed out 2013 with a fleet of 121 passenger aircraft and 26 cargo aircraft. Three Airbus A330s, two A380s, one Boeing 747-8F and one 777F are due for delivery in 2014.
In October, the company finalized a previously announced order for five Boeing 747-8Is and six 777-300ERs and added an additional 787 to the order. The combined order is worth $3.9 billion at current list prices.