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Korean Air's Booming Numbers for First QuarterApril 15, 2010 By: Meagan Drillinger
Korean Air is reporting that its preliminary results for 2010's first quarter are sky high. In fact, Korean Air recorded the highest ever operating profit numbers for the first quarter.
This was attributed to the growth of international passengers and Korea-outbound traffic, as well as an increasing demand for premium class services. In total the operating revenue numbers are showing a year-on-year increase of 14.8 percent. The profit numbers are showing a jump of 33.3 times.
The economy is rebounding quickly in China and Southeast Asia, which is another reason why Korean Air's numbers are so high. Korean Air saw 16 percent and 27 percent growth on the routes to China and Southeast Asia respectively.
Cargo business is another major factor. Demand for world cargo rose steadily in this first quarter. capacity and traffic increased by 10.8 percent. Revenue generated from this segment posted a year-on-year increase of 57 percent, with China and Japan routes exceeding their performance in 2008, which was a big year for cargo business.
Korea Air's outlook on 2010's aviation industry is good, especially with big draws coming up like the 2010 World Expo and the 2010 World Cup.