Korean Air Posts Profit Amid Stronger Currency

KELLY OLSEN

SEOUL, South Korea (AP) — Korean Air, South Korea's biggest airline, said Tuesday it posted a third-quarter net profit compared with a big loss the year before thanks to cheaper fuel costs and a stronger local currency.

Korean Air Lines Co. earned 264 billion won ($227.6 million) in the three months ended Sept. 30, the company said in a regulatory filing. Korean Air posted net loss of 684.1 billion won a year earlier.

Revenue, however, fell 10 percent to 2.48 trillion won from 2.76 trillion won the year before.

It was Korean Air's second straight profit after six straight quarterly losses. The airline's third-quarter loss last year was its worst in 14 years, resulting from high fuel costs and weakness in the South Korean won.

This year, fuel costs dropped 40 percent from 2008 and the average price per gallon fell 50 percent, the airline said in a statement.

Further, Korean Air said it recorded no foreign exchange conversion loss in the third quarter after booking one of 901 billion won the year before. It had a gain of 459.8 billion won this year.