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Korean Air estimates 28% drop in 2018 profit

Korean Air estimates that its 2018 full year operating profit will slide 28% to W692 billion ($620 million), primarily due to impact from higher fuel costs.

In an investor presentation, the airline said that revenue is estimated to grow 7.2% to W12.7 trillion, this involves a 9.8% jump in passenger revenue to W7.7 trillion and a 7.2% climb in cargo revenue to W3.01 trillion. Income from other segment declined 2.5% to W1.9 trillion.

Operating expenses meanwhile rose 10.3% to W11.9 trillion, as fuel expenses jumped 26% to W3.29 trillion. Non-fuel expenditure also climbed 5.3% due to higher labour costs.

Net loss is expected to come in at W80.3 billion, attributed to foreign exchange losses and higher interest expense.

The airline is likely to release the full year figures in February.

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