Korean Air (KAL) has posted a net income of 78.5 billion Korean won ($62.4 million) for the second quarter of 2009 after a sharp increase in non-operating income.

Net income for the three months to 30 June grew by 367.4 billion won from a year before, when the SkyTeam alliance member reported a net loss of 288.9 billion won.

Operating revenue decreased by 16.2% to 2.07 trillion won and operating expenses were 15.1% lower at 2.2 trillion won, resulting in an operating loss of 127.3 billion won, says Korean Air.

However, non-operating revenues increased by 191.2% to 497.1 billion won mainly due to foreign exchange gains. That allowed the carrier to report a net income for the quarter.

KAL's domestic RPKs declined by 21.5% during the three months. Capacity, as measured by ASKs, declined by 10.6% and the load factor was 9.1 percentage points lower at 65.5%. International RPKs declined by 6.8% and ASKs were down 1.2%, with load factors falling by 5.7 percentage points to 66.3%.

The cargo market was also down, with traffic as measured by freight tonne kilometres declining by 15.5%. Capacity, as measured by average freight tonne kilometres, was 14.8% lower. Load factor was almost unchanged at 75.8%.

Source: Air Transport Intelligence news