Asiana Airlines’ second-quarter operating profit disappears after currency losses

  • Asiana A350
    Asiana Airlines

    IATA/ICAO code:
    OZ/AAR

    Airline type:
    Full service carrier

    Hub(s):
    Incheon International Airport

    Year of foundation:
    1988

    Alliance:
    star alliance

    CEO:
    Han Chang-soo

    Country:
    South Korea

On August 14, South Korean airline Asiana Airlines reported a net loss of KRW 91.5 billion ($69.9 million) in the second quarter. During the same period last year, Asiana reported a net profit of KRW 63 billion ($48 million).

Asiana Airlines (Asiana) posted revenue of KRW 1.4 trillion ($1.07 billion) in the second quarter and operating profit of KRW 211.3 billion ($161.4 million ). Revenue for the quarter ended June 30 increased 51% from a year ago, with operating profit more than doubling in the second quarter of 2022. The airline said sales and profit from Operations had increased due to an expansion in the resumption of international flights amid continued momentum. freight trade. This is the fifth consecutive quarter that Asiana has recorded an operating profit, an unbroken streak since the second quarter of 2021.

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Freight is strong but can’t beat exchange rate losses

Cargo revenues increased by 16% in the second quarter of this year, compared to the second quarter of 2021. Photo: Vincenzo Pace I Simple Flying.

Like many airlines, Asiana pays for its aircraft rentals and jet fuel in US dollars. So when the exchange rate increases, these costs also increase in the local currency. In the case of Asiana, it lost around KRW 328 billion ($250 million) in currency conversions in the second quarter of 2022. Cargo activity increased by 16% compared to the second quarter of 2021, with gains from Europe (52%), Southeast Asia (20%) and China. (51%). The airline said high-value products, such as semiconductors, manufacturing equipment, electromechanical and mechanical parts, as well as automobiles and parts, accounted for more than half of the cargo items carried. Additional cargo business came from transporting new coronavirus diagnostic kits and KAI T50 advanced trainer aircraft made in South Korea.


Passenger revenue increased by 459% for international flights and 59% for domestic flights, reaching KRW 504.3 billion ($384 million). The dramatic growth in international traffic parallels the opening of borders in South Korea and around the world, with increased capacity to meet demand. The airline said,

“The recovery was notable primarily on intercity and Southeast Asian routes, with sales on routes to Europe, the Americas and Southeast Asia up 1,121%, 523% and 525%, respectively, compared to the same period last year. We have actively responded to changing demand by increasing international flights to 39 times per week since the first quarter, for example resuming flights to Paris, Rome and Hawaii.”

Additional capacity is here as international demand grows

Adding capacity is not a problem for Asiana as, according to ch-aviation.com, it has sixteen idle aircraft out of a total fleet of 80. American or Australian. These include five Boeing B777-200ERs, four B767-300s, three Airbus A380s and three A330-300s. Currently listed as active are 19 of the A320 Family, 12 A330-300s, 13 A350-900s, three A380s, one B747-400, one B767-300 and four B777-200ERs. Asiana also owns eleven freighters, mainly B747s.


Asiana operates three of its six Airbus A380s, which are on average only seven years old. Photo: Vincenzo Pace/Simple Flying

The airline is a member of Star Alliance and operates more than 100 routes to 77 destinations in 27 countries. Some of its most popular destinations include London (LHR), Bangkok (BKK), Singapore (SIN), Los Angeles (LAX), New York (JFK), Tokyo (NRT) and Sydney (SYD). Looking to the remainder of 2022, Asiana said it plans to secure more advance cargo bookings and revise flight schedules to prepare for economic uncertainty in the second half of the year. . It also intends to add more passenger lines where demand is highest.

For passengers, is there a big difference between Asiana and Korean Air?