S. Korea's top airlines to hike international fares

SEOUL, May 15 (Yonhap) -- South Korea's top two airlines said Friday they will jack up airfares for international flights next month to make up for rising costs and prop up tumbling earnings.

Top carrier Korean Air Lines Co. said it will increase passenger fares for routes
to the United States by 10 percent, while planning a 5-percent raise for flights
to destinations in Europe.
Asiana Airlines Inc. said it will bump up fares for U.S.-bound flights by 10-15
percent, with a 5-10 percent hike scheduled for flights to Europe.
The two carriers had frozen international airfares for more than two years.
"We decided to raise international airfares to cushion rising costs from high oil
prices and a weaker local currency, coupled with slumping demand for air travel
amid a global economic slowdown," an airline official said, declining to be
named.
The South Korean won fell around 17 percent against the U.S. dollar as of
Thursday, compared with a year earlier, boosting their fuel and debt-servicing
costs.
Hit by a weak local currency and sagging demand, the two airlines posted losses
in the January-March quarter. Korean Air lost 526.3 billion won (US$416 million)
in the quarter with Asiana's loss reaching 262 billion won.
pbr@yna.co.kr
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