Asiana Airlines said on the 14th that it swung to a loss, reporting an operating loss of 52.4 billion won on a consolidation basis in the first quarter of this year, compared with an operating profit of 55.4 billion won in the same period last year.
Revenue for the same period fell 19% to 1.6805 trillion won. Net income for the first quarter turned to a loss of 252.4 billion won from a profit of 125.5 billion won in the same period last year.
Asiana Airlines said first-quarter results were affected by reduced passenger capacity, the sale of the freighter business, investment to improve customer service, and integration preparation expense.
The company said net loss was affected by operating loss and increased exchange-rate volatility. However, derivatives related to the fuel hedges it entered into to prepare for rising oil prices posted a profit of 85 billion won, narrowing the deficit.
Asiana Airlines plans to enhance profitability by focusing on securing demand, strengthening its Europe and Americas network and bolstering its portfolio of popular routes such as Japan to meet solid passenger demand, even as uncertainty persists in the second quarter.