Asiana Turns Profitable After 6 Quarters... 'Cargo Saved' Amid COVID-19 Crisis

Operating Profit of 115.1 Billion Won 'Earnings Surprise'

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] Asiana Airlines announced on the 7th that its sales for the second quarter reached 818.6 billion KRW, and operating profit was 115.1 billion KRW, according to a preliminary report. This marks a return to profitability after six consecutive quarters despite the challenges posed by the COVID-19 pandemic.

The turnaround to profitability was driven by the expansion of air cargo operations and cost-saving efforts. Compared to the same period last year, cargo sales increased by 95%, while operating expenses decreased by 56%. As a result, operating profit rose by 222.1 billion KRW and net profit increased by 173.9 billion KRW year-on-year, both returning to the black.

In particular, the cargo division flexibly managed cargo flight schedules and actively arranged charter cargo flights to meet the increased demand caused by the reduction in passenger flights. The company also expanded belly cargo operations, transporting cargo in the belly holds of passenger aircraft, which led to increased cargo sales across all routes. The company explained that sales on long-haul routes such as those to the Americas and Europe, which account for the majority of cargo revenue, more than doubled compared to the same period last year.

Asiana Airlines also reduced costs by switching aircraft maintenance from outsourcing to in-house maintenance. Four aircraft originally scheduled for outsourced maintenance were serviced internally, and additional heavy maintenance was performed on nine aircraft during the first half of the year. In total, 27 aircraft (51.9% of the annual plan) completed heavy maintenance, enhancing both cost savings and safety.

Asiana Airlines stated, “Despite the difficulties caused by COVID-19 and the ongoing M&A process, we achieved unexpectedly good results thanks to the active participation of all employees in cost-saving measures.”

This content was produced with the assistance of AI translation services.