Korean Air, Asiana Earnings Plunge Due to Chinese Boycott
Korean Air and Asiana Airlines posted dismal performances in the third quarter due to China's unofficial boycott of Korean products and services.
Korean Air on Tuesday said third-quarter revenues totaled W3.2 trillion and operating profit W355.5 billion. Revenues rose 3.1 percent on-year, but operating profit fell 22.7 percent.
It was hit hard by a decrease in Chinese passengers as earnings from Chinese flights plunged 19 percent. Earnings on Japanese routes also fell 11 percent, but those from Southeast Asia and U.S. flights grew 14 and 2 percent. Cargo earnings rose 10 percent thanks to robust exports of mobile phones and semiconductor products.
Asiana also saw third-quarter operating profit plummet 21.6 percent to W118.9 billion, though revenues rose 4.8 percent to W1.63 trillion.
A Korean Air staffer said the fact that the Chuseok holidays were in October this year, not in the third quarter in September like last year, also affected the figures.