Asiana Airlines swings to loss in Q3

SEOUL, Oct. 28 (Yonhap) -- Asiana Airlines Inc., South Korea's second-largest air carrier, said Tuesday that it swung to a loss in the third quarter from a year earlier due to higher fuel costs and a weaker local currency.

Net loss came to 47.9 billion won (US$32 million) in the July-September period, a
turnaround from a profit of 36.9 billion won a year earlier, Asiana Airlines said
in a regulatory filing.
Sales rose 21 percent to 1.17 trillion won over the cited period, but operating
income dropped 70 percent to 23.7 billion won.
"The loss in the third quarter can be attributed to higher oil prices and a
weaker local currency," Asiana Airlines said in a statement.
According to the airline, fuel costs increased 83.2 percent on-year to 470
billion won in the third quarter as the weaker won boosted the costs of
dollar-denominated jet fuel.
The weaker currency also inflated financial costs for foreign currency debt. The
country's currency has lost nearly 35 percent against the U.S. dollar so far this
year as foreigners continued to pull a huge sum of money out of local stocks on
global financial turmoil and economic slump concerns.
Shares of Asiana Airlines were trading at 2,470 won as of 11:05 a.m. on the Seoul
bourse, down 2.18 percent.
sam@yna.co.kr
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