(LEAD) Korean Air turns to Q2 profit on stronger won

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SEOUL, Aug. 14 (Yonhap) -- Korean Air Lines Co., South Korea's biggest air
carrier, said Friday it swung to a profit in the second quarter of the year as a
stronger local currency drove up foreign exchange gains.

Net profit stood at 78.5 billion won (US$63.7 million) during the April-June
period, compared with a deficit of 288.9 billion won the same period last year,
the company said.
Sales, however, plunged 16.2 percent on-year to 2.75 trillion won, with operating
loss widening to 127.3 billion won from a deficit of 116.4 billion won a year
earlier, it said.
The improved bottom line came as a stronger won, which rose nearly 9 percent
against the U.S. dollar in the second quarter, cut the value of its dollar debts,
Korean Air said in an e-mailed statement.
The carrier suffered operating losses, however, as the global economic downturn
coupled with an outbreak of influenza A cut into demand for air travel, the
company said.
Shares of Korean Air were trading at 45,400 as of 2:06 p.m. on the Seoul bourse,
up 0.22 percent from Thursday's close.
The airline said its third-quarter earnings may gain ground as a stabilizing
local economy and a strengthening local currency are consistently expanding
travel demand.
pbr@yna.co.kr
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