Asiana Airlines net profit jumps up 181% in Q3
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Asiana Airlines, Korea’s second-largest airline by sales, said on Tuesday that its third-quarter net profit skyrocketed 181 percent on improved financial status. Net profit in the July-September period came to 47.8 billion won ($42.5 million), up from 17 billion ($15 million) won a year earlier on a consolidated basis, the company said in a statement.
Operating profit fell 15 percent to 101 billion won ($89.7 million), while sales increased 14 percent to 1.85 trillion won ($1.64 billion) over the cited period.
The company attributed the rise in net profit to an improvement in its financial structure.
Asiana said its debt reduced from 4.06 trillion won ($3.6 billion) by the end of last year to 3.14 trillion won ($2.68 billion) by the end of September.
Profit from the summer peak season and sales of its group office building in downtown Seoul were reflected in the latest earnings, according to the company.
Meanwhile, Asiana cited rising oil prices as the cause of the drop in operating profit.
Shares of the flag carrier closed at 3,920 won ($3.48) on the Seoul bourse, up 1.16 percent from the previous session’s close.
Questions & Answers
Q.What was Asiana Airlines' net profit in the July-September period?
What was Asiana Airlines' net profit in the July-September period?
Asiana Airlines' net profit for the third quarter was 47.8 billion won ($42.5 million). This represents a 181 percent increase compared to the 17 billion won ($15 million) reported in the same period last year.
Q.Why did Asiana Airlines' net profit increase despite a fall in operating profit?
Why did Asiana Airlines' net profit increase despite a fall in operating profit?
The rise in net profit was attributed to an improvement in the company's financial structure, including reduced debt. Profit from the summer peak season and the sale of a group office building also contributed.
Q.What caused the 15 percent fall in Asiana Airlines' operating profit?
What caused the 15 percent fall in Asiana Airlines' operating profit?
Asiana Airlines stated that rising oil prices were the primary reason for the 15 percent drop in operating profit. This affected their profitability despite an increase in sales.
Q.By how much did Asiana Airlines reduce its debt by the end of September?
By how much did Asiana Airlines reduce its debt by the end of September?
Asiana Airlines reduced its debt from 4.06 trillion won ($3.6 billion) at the end of last year to 3.14 trillion won ($2.68 billion) by the end of September. This improvement contributed to its net profit.