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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Asiana Airlines reported a consolidated operating loss of KRW 52.4 billion for the first quarter of 2026, reversing from an operating profit of KRW 55.4 billion recorded a year earlier, the company disclosed on May 14.
Revenue for the same period fell 19% year-on-year to KRW 1.68 trillion. Net loss for the quarter totaled KRW 252.4 billion, compared with a net profit of KRW 125.5 billion in the same period last year, marking a sharp turnaround into the red.
The company attributed the weaker performance to reduced passenger capacity, the sale of its cargo business, and increased costs related to customer service improvements and integration preparations.
Asiana Airlines added that heightened foreign exchange volatility further weighed on net earnings alongside the operating loss. However, derivative instruments tied to fuel hedging—put in place to mitigate rising oil prices—generated gains of approximately KRW 85 billion, helping to partially offset the overall losses.
Despite ongoing uncertainties in the second quarter, the airline said it plans to strengthen its network across Europe and North America while expanding routes with strong customer demand, such as Japan, in a bid to secure demand and improve profitability.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
