Korean Air Q3 profits jump 121%

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Korean Air (KAL) has reported a third quarter net profit of 584 billion Korean won ($523 million), up 121% from a year before.

Operating revenues grew 26.2% to 3.1 trillion Korean won, with the international passenger and cargo businesses the main contributors in the three months to 31 October, says the SkyTeam alliance member.

Operating profits tripled to 358 billion Korean won, it adds.

Passenger revenues were up 21.4% year-on-year to KRW1.82 trillion in the third quarter, thanks largely to the economic turnaround in China and Southeast Asia.

Cargo revenues rose 42.2% to 943.6 billion Korean won, with demand from Japan and exports of automobile parts and semiconductors contributing to this.

"Korean Air sees an encouraging rebound in the aviation industry going ahead," says the carrier, which adds that it is "well-positioned to capture the growth derived from the booming world travel demand".

The airline will add five Airbus 380 aircraft to its fleet by the end of 2011, with the first entering into service in May. This will increase its competitiveness on the Asia-Europe routes, adds KAL.