Stocks of the country’s largest full-service carrier, Korean Air, hit another record low on Friday after the company reported poor second-quarter earnings amid a deteriorating business environment and hefty foreign exchange losses.
On Friday, shares of Korean Air fell 0.2 percent to close at 22,850 won ($18.87) per share, recording a new 52-week low, while the benchmark Kospi remained relatively steady.
According to Korean Air, the airline recorded 3.2 trillion won in sales from April to June, which had inched up by 0.2 percent on-year. The company said things had improved slightly, mainly due to increased demand through route diversification and a joint venture with Delta Air Lines.
But it posted an operating loss of 98.6 billion won in Q2, from an operating profit of 66.7 billion won from the previous year. Its net loss recorded 380.8 billion won in Q2.
The air carrier’s operating profit in the first half of 2019 plunged to 46.7 billion won, an 81.9 percent drop from 259.2 billion won for January to June of 2018.
The company expected the second half of this year to be tougher in light of the chilly relations with Japan and ongoing trade tensions between the US and China.
“Despite an unfavorable business environment, we will continue to increase our competitiveness through Delta Air Lines JV, as well as flight modernization,” said Korean Air.
By Kim Da-sol (firstname.lastname@example.org)