Korean Air Q2 net losses widen on FX losses

Economy 17:14 August 14, 2019

SEOUL, Aug. 14 (Yonhap) -- Korean Air Lines Co., South Korea's national flag carrier, said Wednesday its second-quarter net losses widened from a year earlier due to hefty foreign-exchange losses.

For the three months that ended in June, net losses widened to 396.3 billion won (US$327 million) from 304.7 billion won a year earlier, Korean Air said in a statement.

"The won's weakness (against the dollar) and lower demand in cargo deliveries amid a U.S.-China trade war cut into the quarterly bottom line," a company spokesman said over the phone.

The won fell to an average of 1,165.91 against the greenback in the second quarter, from 1,078.57 a year ago, according to the Bank of Korea. A weak won not only drives up fuel purchasing costs but also the value of dollar-denominated debts when converted into the local currency.

The company posted an operating loss of 98.6 billion won in the second quarter, shifting from an operating profit of 66.7 billion won a year earlier. Sales rose 0.5 percent to 3.12 trillion won from 3.11 trillion won during the same period.