South Korean flag carrier Korean Air announced Wednesday its operating profit rose more than 33-fold in the first quarter from a year earlier on increased demand. Operating profit for the three months ended March 31 soared to 220.2 billion won (197 million dollars) from 6.6 billion won a year earlier as a strong won and economic recovery boosted outbound travel and cargo shipments.
Net profit for the same period was not immediately available. Sales rose 15 percent to 2.599 trillion from 2.264 trillion a year earlier. "Increased travel to China and Southeast Asia and exports by IT companies pushed up the quarterly results," Korean Air said.
The Korean currency strengthened to an average of 1,144.08 won against the dollar in the first quarter, compared with 1,415.22 won a year earlier. Cho Won-Tae, head of the passenger business division, said the first quarter's operating profit was 20 percent greater than earlier expected, predicting that business will remain hectic through this year.
The company has now jacked up this year's operating profit target to one trillion won from 800 billion won on sales of 10.6 trillion won, Cho said. The company plans to provide more seats by increasing the number of flights and using larger planes instead of increasing destinations, Cho said.