[Edaily Reporter Kim Hyung-wook ] With its merger with KoreanAirLines just over a month away, Asiana Airlines solidified its sales foundation by increasing passenger revenue by 10% in the third quarter of this year. However, it continued to post an operating loss amid high fuel prices and the burden of merger preparation costs.
Asiana Airlines announced on the 12th that it recorded revenue of 1.5262 trillion won and an operating loss of 179 billion won on a standalone basis for the third quarter of this year. Revenue increased by 4.2% compared to the same period last year, while the operating loss remained at the same level as the previous year (175.7 billion won).
The passenger business drove the revenue growth. Third-quarter passenger revenue totaled 1.2671 trillion won, an increase of 111.6 billion won (9.7%) compared to the same period last year. This was the result of expanding high-margin short-haul routes and increasing flight frequencies on European routes during the summer peak season. The company explained that average passenger revenue per seat rose by 18.1% and the load factor increased by 1.2 percentage points.
Route operations were also realigned to prioritize profitability. Following the launch of new routes to Milan, Italy, and Budapest, Hungary, in the second quarter of this year, the airline introduced a new route to Kobe, Japan, in September and increased flight frequencies on the route to Barcelona, Spain. Conversely, to minimize losses, the airline temporarily scaled back operations on certain less profitable routes in Southeast Asia and Central Asia.
Third-quarter cargo revenue totaled 96.6 billion won, a decrease of 47.4 billion won from last year, but this was offset by growth in passenger revenue. The passenger aircraft cargo hold transport business—which remained after the sale of the dedicated cargo aircraft business last August—also showed signs of partial improvement, with revenue in August and September of this year increasing by 110% compared to the same period last year.
However, the cost burden resulting from high oil prices persisted. Third-quarter fuel expenses totaled 590.7 billion won, an increase of 147.2 billion won compared to the same period last year. The company explained that costs associated with ensuring safe operations, improving in-flight meals, cabin, and lounge services, as well as preparations for integration, also contributed to the operating loss.
Net income was 179.4 billion won, marking a return to profitability from a net loss of 304.3 billion won in the same period last year. This was due to a foreign exchange gain of 460.4 billion won resulting from the closing exchange rate at the end of the third quarter falling from 1,402 won per dollar to 1,358 won per dollar.
Asiana Airlines is currently finalizing preparations for its merger with KoreanAirLines. The codeshare program with KoreanAirLines, which began in April of this year, has been expanded to 52 routes as of August, and the two airlines have also unified their seat numbering systems. On September 15, the airline also introduced “Starlink,” a satellite-based in-flight Wi-Fi service. Currently, reservation and ticket information is being gradually transferred to KoreanAirLines. The merged KoreanAirLines will officially launch on December 17, toward the end of the fourth quarter.
The company plans to continue adjusting capacity by route and expanding codeshare operations in the fourth quarter—even as the merger takes place—to respond to the off-season and fluctuations in oil prices and exchange rates. It will also expand the range of aircraft equipped with Starlink and the options for redeeming frequent flyer miles. An Asiana Airlines official stated, “We will focus the company’s full resources on ensuring a stable launch of the merged airline,” adding, “In particular, we will strive to guarantee customer convenience throughout the merger process.”
