Korean Air Third-Quarter Net Profit Soars

Korean Air Co., South Korea's biggest airline, reported Friday that third-quarter net profit jumped 59 percent from the same period last year as an increase in fuel costs was absorbed by fuel-surcharges and higher demand for passenger flights.

Korean Air, the world's largest cargo carrier by freight volume, posted net profit of 154.2 billion won ($148 million) in the three months ended Sept. 30, compared with 97.2 billion won ($93 million) a year ago, the company in a statement.

Last year's figure was revised from the initial 85.4 billion ($81.3 million) due to a change in accounting policy.

Sales during the quarter rose 6.8 percent from a year earlier to 2.12 trillion won ($2.02 billion) because of higher fares and as the airline filled more of its seats.

Korean Air and smaller rival Asiana Airlines Inc. have raised fares on all of their international routes through fuel-surcharges of up to $30 per one-way flight since July this year amid record high oil prices.

Revenue from Korean Air's international passenger division was 1.12 trillion won ($1.07 billion) in the July-to-September period, up 12.6 percent on year and accounting for more than half the company's total revenue in the third quarter.

Cargo revenue slipped 0.1 percent on year to 589.1 billion won ($560 million).

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