KAL’s 4Q2010 net profit slides 18%

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Korean Airlines (KAL) posted a net profit of 69.6 billion South Korean won ($62.4 million) in the fourth quarter, down 18% from the corresponding period in 2009.

Net profits for 2010 were 468.4 billion won, compared with a net loss of 98.9 billion won in 2009, says KAL. Fourth quarter operating revenue was 2.9 trillion won, up 12.4% from 2009; full year operating revenue was 11.5 trillion won, up 22% from 2009.

Fourth quarter operating profits rose 22.6%, reaching 188.8 billon won. Operating profits for the entire year were 1.1 trillion won, an eight-fold increase on 2009.

International passengers accounted for 50.5% of the carrier's 2010 operating revenue, while cargo accounted for 33.1%. The balance came from miscellaneous items such as 'others' (7.4%), domestic passengers (4.4%), 'aerospace' (3.3%), catering (0.6%), hotel & limousine (0.4%), and 'flight operations related' (0.3%).

In regard to passenger traffic, fourth quarter international RPKs rose 6.5% from the corresponding period in 2009, while fourth quarter domestic RPKs rose 7.3%. Fourth quarter international ASKs rose 1.6%, while fourth quarter domestic ASKs fell 4.5%.

In regard to cargo, fourth quarter FTKs rose 1.7%, while AFTKs rose 1.8%.

Among major expenses, jet fuel comprised 33.7% in the fourth quarter, compared with 32.4% a year earlier. Labour costs rose significantly, accounting for 14% of expenses in the fourth quarter, compared with 9.6% a year earlier.

KAL also outlined its fleet status. At the end of 2010 it had 129 operational aircraft, 105 passenger aircraft and 24 freighters. It will take delivery of 18aircraft in 2011: five Airbus A380s, two A330s, three Boeing 777s, six 737s, and two 747 freighters.