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(LEAD) Asiana shifts to Q2 profit on cargo demand

All News 13:40 August 07, 2020

(ATTN: ADDS photo and details in paras 5-7)

SEOUL, Aug. 7 (Yonhap) -- Asiana Airlines Inc. said Friday it shifted to a net profit in the second quarter from a year earlier as cargo-carrying volumes offset lower travel demand amid the new coronavirus outbreak.

The country's second-biggest carrier swung to a net profit of 116.15 billion won (US$98 million) in the April-June quarter from a net loss of 183.14 billion won in the same period last year, the company said in a statement.

"Increased cargo deliveries on long-haul routes to the United States and Europe helped offset a sharp decline in passenger travel demand amid growing virus woes," a company spokesman said.

This photo taken Aug. 2, 2020, shows Asiana planes at Gimpo International Airport in western Seoul.

Asiana also shifted to an operating profit of 115.08 billion won in the second quarter from an operating loss of 107.03 billion won a year ago. Sales fell 45 percent to 818.6 billion won from 1.48 trillion won.

Asiana has suspended most of its flights on international routes since March, as more than 180 countries and territories closed their borders or imposed entry restrictions on incoming passengers amid virus fears.

From January to June, net losses widened to 432.9 billion won from 267.4 billion won in the year-ago period. Operating losses fell 33 percent to 2.04 trillion won from 3.04 trillion won during the same period.

In its latest self-help plans, Asiana has had all of its 10,500 employees take unpaid leave for 15 days a month since April until business circumstances normalize. Asiana's executives have also agreed to forgo 60 percent of their wages, though no specific time frame was given for how long the pay cuts will remain in effect.

Asiana released parent-based figures Friday, and its consolidated quarterly financial results will be available next week.


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