2nd LD) Korean Air turns to Q2 profit on stronger won

(ATTN: RECASTS lead, UPDATES with closing share price)
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 on foreign
exchange gains and cheaper fuel costs, reversing six consecutive quarterly
losses.

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 its
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 closed at 45,500 won on the Seoul bourse, up 0.44 percent
from Thursday's close.
The airline said its third-quarter earnings could gain ground as a stabilizing
local economy and strengthened local currency bolsters travel demand.
pbr@yna.co.kr
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