Asiana reports 231.5bn won losses in 2009

Singapore
Source:
This story is sourced from Pro
See more Pro news »

South Korea's Asiana Airlines has posted 231.5 billion won ($200 million) in losses in 2009, as the carrier was hit by reduced passenger demand.

It losses grew 2% from a year ago, where it chalked up 227.2 billion won in losses, says an airline spokesman.

Total revenue fell 8% to 3.89 trillion won in 2009, he adds.

The airline's operating loss more than doubled to 52.7 billion won from 23.5 billion won in 2008, says the spokesman.

"The reason for the losses is low passenger demand, as a result of the economic downturn and the H1N1 flu, which caused a lot of trouble for carriers all over the world," he adds.

Asiana is likely to cut unprofitable routes to stem its losses, says the spokesman. The carrier's parent company, cash-strapped Kumho Asiana Group, is undergoing financial restructuring.

"We have not decided yet [on cutting routes], but that is a possibility. We have to see how the restructuring of our parent company goes first," adds the spokesman.