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(LEAD) Asiana Airlines Q2 net losses deepen on FX losses

All Headlines 18:01 August 14, 2019

(ATTN: ADDS details in paras 5-7, last para)

SEOUL, Aug. 14 (Yonhap) -- Asiana Airlines Inc. said Wednesday its second-quarter net losses deepened compared to a year earlier due to increased foreign-exchange losses.

For the three months that ended in June, net losses widened to 202.4 billion won (US$167 million) from 46.8 billion won a year earlier, Asiana said in a statement.

"The won's weakness against the dollar and lower demand in the cargo delivery business amid the U.S.-China trade war had an impact on the quarterly results," a company spokesman said by 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 drives up not only fuel purchasing costs but also the value of dollar-denominated debts when converted into the local currency.

Looking ahead, Asiana expressed grave concerns about a fall in travel demand to Japan.

In response, Asiana is planning to reduce the number of flights on its routes to Japanese destinations, such as Fukuoka, Osaka and Okinawa, starting in mid-September. The Busan-Okinawa route will be suspended from Aug. 23.

A series of export curbs imposed by Tokyo on Seoul has sparked a "Boycott Japan" campaign here against Japanese products and travel to the neighboring country.

Asiana swung to an operating loss of 124.1 billion won in the April-June quarter from an operating profit of 23.9 billion won the previous year. Sales during the cited period were nearly flat at 1.75 trillion won compared to 1.74 trillion won in 2018.

From January to June, net losses sharply widened to 202.4 billion won from a loss of 46.8 billion won a year earlier. The company swung to an operating loss of 116.9 billion won from an operating profit of 89.4 billion won over the cited period. Sales were nearly unchanged at 3.47 trillion won compared with 3.46 trillion won a year earlier.

(LEAD) Asiana Airlines Q2 net losses deepen on FX losses - 1


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