Korean Air Achieves Record High Q2 Results

– Korean Air, South Korea’s flagship airline, announced today its financial results for the second quarter of 2010 ended June 30, 2010, which hit record high in terms of the operating revenue.


Thanks to the global economic recovery which spurred demand for both international passenger travel and cargo traffic, the airline posted an operating revenue of 2,836.4 billion KRW in the second quarter of 2010, a year-on-year increase of 36.7%, the highest second-quarter revenue in Korean Air’s history. International passenger and cargo businesses remained the major revenue contributors for the airline, accounting for 47% and 36% of the operating revenue respectively. Operating profit of the airline returned to the black from a loss of 127.3 billion KRW in the second quarter of 2009 to a surplus of 352.1 billion KRW during the reporting period. Profit margin was 12.4%, a significant year-on-year improvement and another historic record.

For the six months ended June 30, 2010, the airline recorded an operating revenue of 5,435.4 billion KRW, up 25.3% year-on-year, while operating profit reached 572.3 billion KRW, up from a loss of 120.7 billion KRW comparing with the first half of 2009.

Passenger Traffic

A continuous growth was seen in the passenger traffic since the second half of 2009 as a result of the rebound of the global economy. During the reporting period, passenger traffic recorded 14,646 million RPK, which marked the highest second-quarter traffic level in Korean Air’s history.

Revenue generated from this segment posted a year-on-year increase of 25.8% to 1,486 billion KRW. Rapid growth of leisure travel demand for short-haul routes such as China, Japan and Southeast Asian regions, together with the benefits brought by the visa waiver program for Korean passengers to the US regions, helped to boost international passenger revenue by over 25% in those regions. Among all international routes, China recorded the biggest growth of 50% in passenger revenue.

Cargo

Attributable to the increasing exports of IT products (such as LCDs, semi-conductors and cell phones), cargo traffic reached 2,503 million FTK, up 26.2% year-on-year, the highest quarterly growth record for Korean Air. Cargo traffic to Europe more than doubled, and cargo traffic to the Americas and Japan nearly doubled during the reporting period. Revenue generated from this segment posted a year-on-year increase of 86.4% to 1,020.2 billion KRW.

Korean Air will continue to expand its business prudently while enhancing the quality of its service. With its long-standing commitment to achieving “Excellence in Flight”, Korean Air aims to provide the best quality to its customers while bringing the best returns to its shareholders.

* Exchange rate on June 30, 2010: 1 US Dollar = [1210.30] KRW

Korean Air, only a touch away with Android Phone

Korean Air launches its own Android Application service from July 29 to users worldwide. The Korean Air Android Application will allow the traveling public to verify and search up-to-the minute flight and airline information with just one touch, similar to the Korean Air iPhone Application launched in May.

Services available through this application, like the iPhone, include flight status check, schedules and availability check, current reservation information, ticket fares and SKYPASS mileage records.

Plus, Korean Air has added a special menu that links directly to the Korean Air travel site (travel.koreanair.com). The site contains many useful travel information including Korean Air’s TV ad for Europe, “Listen to Eastern Europe”, which is a sound tour guide for famous Eastern Europe tour destinations.

To enjoy this privileged service, customers can simply download the free application from the Android market. This application is available in multiple languages including Korean, English, Japanese, and Chinese for users all around the world.

With the increasing number of worldwide smartphone users, Korean Air will continuously upgrade its smartphone application services through supplementing additional functions such as seat reservations and pre-seat assigning to increase passenger’s comfort.

Korean Air’s iPhone Application which was launched in May 17 has been downloaded by more than 120,000 users worldwide.

Korean Air deploys A330 -200 Enhanced aircraft on mid and long haul routes

Korean Air has further enhanced its award wining flight service with the deployment of next generation aircraft on its mid and long-haul routes to combat carbon emissions and to provide even greater comfort for passengers.

Korean Air today has started deploying on select routes the A330-200 Enhanced aircraft, one of Airbus’ main models which offer enhanced features such as better fuel efficiency, lower CO2 emissions and an expanded range of cabin facilities.

The new A330-200 Enhanced next generation aircraft can carry up to 226 passengers and has a range of added features to improve passenger experience. Installed with a PW4170 Advantage70™ engine, the aircraft offers maximum fuel efficiency and can reduce CO2 emissions by about 650 tons each year.

In addition, Korean Air’s premium seats and state-of-the-art AVOD system are available in all classes, providing customers with the most enjoyable air travel experience. Additional cabin services used to be found only on B777-300ER aircraft such as mood lights, real time visuals of taking off and landing, and LED reading lamp are now available on this aircraft.

A part from the new aircraft unveiled today, Korean Air will add five more A330-200 Enhanced aircraft by 2013 to its mid and long-haul destinations such as Mumbai (India), Tel Aviv (Israel), Melbourne (Australia) and Nandi (Fiji).

Prior to the delivery of the A330-200 Enhanced, Korean Air has adopted six B777-300ER next generation aircraft with upgraded efficiency since last May. Together with the completion of cabin refurbishment in its current B777s and A330s fleets, Korean Air is able to continue to provide passengers with unmatched services in its class.

Korean Air’s commitment to service excellence has won it six A330 Awards for Top Operational Excellence awards since 2000, a testament to the airline’s top class operating, maintenance and safety standards.

Korean Air Lounge at Incheon Airport ranked No.1 in Asia Pacific by United Kingdom’ Priority Pass

Korean Air’s Lounge at Incheon International Airport Concourse A has been named “Priority Pass Lounge of the Year 2010” in Asia Pacific by Priority Pass, a UK-based company that provides worldwide cross-airline airport lounge access.

In a survey of its one million-plus members worldwide this year, Priority Pass says Korean Air’s Incheon lounge was voted No.1 among 109 candidates in the Asia Pacific region.

Commenting on the award, Mr. Chi Chang-Hoon, President and Chief Operating Officer of Korean Air, said “We are very pleased that our efforts in providing our customers with a comfortable and enjoyable travel experience have been recognized by this prestigious award. We would like to thank our customers and all Priority Pass members for their continued support."

“This award serves to remind all of us at Korean Air to continue to work towards providing the best travel experience to our customers from ground to air. It also sits well with our ‘Excellence in Flight’ corporate slogan,” continued Mr. Chi. “Priority Pass Lounge of the Year” was created to honor excellence in airport lounge services worldwide and encourage enhancements.

Korean Air has partnered with Priority Pass since 1999 and currently has 13 lounges in the program, including New York, Los Angeles, and Tokyo.

 Korean Air lounge at Concourse A

Korean Air lounge at Concourse A

March 2010, Korean Air Monthly Video Newsletter

Korean Air monthly video newsletter, content of this issue contains of
(1) Korean Air’s Codeshare With Air Macau Begins.
(2) Hanjin Group Chairman Yang Ho Cho Named Peace and Sport Ambassador.
(3) New Korean Air TV Ads to Boost Tourism Ties with Australia.
(4) Online Raffle – Match the Images.
(5) TV Commercial ‘From Korea to Global’.

Click here to view the video newsletter.

Monaco’s Prince Albert puts the Peace and Sport’s golden pin on Chairman Cho’s jacket.

Korean Air TV Commercial - From Korea to Global

TV Commercial Still, Great Barrier Reef

TV Commercial Still, Hang Gliding

Online raffle - Mission, match the images!

Macau

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New Korean Air TV Ads to Boost Tourism Ties with Australia

To celebrate 20 years of flying to Australia, Korean Air today launches a new series of TV commercials in Korea to strengthen its tourism ties with Australia.


Thanks to its vibrant environment for business, education and culture, Australia has long been a popular destination. Korea’s Incheon Airport not only serves as a gateway to Australia for Koreans, but a growing number of travelers from China and Europe have also discovered the benefits of transiting via Incheon to Australia. To better serve this increasingly busy route, Korean Air flies daily between Incheon and Sydney, as well as thrice weekly to Melbourne and five times per week to Brisbane.

A crew of over 25 people invested more than 2 weeks to produce the ads spotlighting Australia as an exciting destination for the 20-30 age group. The Korean Air produced TV ads highlight the unique environment and breathtaking beauty of the land that is affectionately called “Down Under.”

As the title sponsor of “On-Game-Net Channel’s Starcraft League” online game in Korea, the airline invited one of the league’s top gamers to star in the ads. Through the eyes of the gamer, the ads aim to draw the viewers into the ads as the gamer scales the Sydney Harbour Bridge, cruises around the Great Barrier Reef, and soars above the land’s endless horizon on a hang-glider. Other magnificent scenes showcased in the ads include an exhilarating coastal drive along the Great Ocean Road.

As many as 162,000 Koreans have visited Australia in the first eleven months of 2009, according to the Australian Tourism Board. For two decades now Korean Air has served as a bridge between North Asia and Australia for countless travelers with its award winning service.

Korean Air expects the ads to help boost the number of visitors to Australia.

Australia - Great Barrier Reef

Australia - Hang Gliding

Morning Calm Magazine, February 2010

Korean Air in-flight magazine – Morning Calm, February 2010 issue which cover image of Korean brass candlestick.

Inside this issue:

Cover Story

• Cast in Steel

Special Feature

• At Dawn - Snow Falls
• Escapes - The Untamed East
• Growing Peanuts

Travel Section

• The Seas to the Sky
• Dancing with the Dragons
• Seoulite - Forever Young
• Hiddle Korea - A Winter's Tale

Korean Culture

• Guide of the Knife

Life Style

• Icy Sweet Success
• Scary Good
• History of the Eating
• Gorging on Gloop
• A Beautiful Whole
• To Really Move

The in-flight magazine is now available on all Korean Air flight.

Click here to browse this issue

Korean Air awarded by Global Traveler Readers

Korean Air recently awarded by Global Traveler Readers, this photo is taken at the award presentation ceremony.

Click here for the story.

Join Korean Air at social networking sites

To know more about Korean Air at social networking sites.

Twitter
Youtube
Facebook: Worldwide Fan page  
Facebook: Hong Kong Fan page
Facebook: Australia Fan page
Flickr
My Space

Korean Air Recorded Strong Performance in Q4 2009

Seoul, January 22, 2010 – Korean Air, South Korea’s flagship airline, announced today its results for the fourth quarter of 2009 ended December 31, 2009.


The airline posted an operating profit of 154 billion KRW for the fourth quarter, a significant increase of 580.9% compared to 22.6 billion KRW a year earlier, thanks to the surging growth of cargo business and a pick-up in the international passenger business in the reporting period. During the quarter, the airline recorded a net income of 122.3 billion KRW, compared to a loss of 644 billion KRW in the same quarter in the previous year. Operating revenue held steady at 2,578.2 billion KRW during the quarter in spite of a challenging operating environment for the aviation industry. International passenger and cargo businesses remained the major revenue contributors for the airline in Q4, accounting for 48.1% and 36.5% of the operating revenue respectively.

Lower fuel prices and a stronger Won have helped reduce the airline’s operating expense. During the reporting period, total operating expense reached 2,424.2 billion KRW, an Y-o-Y drop of 9.9%. The proportion of fuel cost lowered from 38% to 33% compared with the fourth quarter in 2008.


International Passenger Business
International passenger segment recorded a growth of 6.5% and 11.3% in passenger carrying capacity and traffic compared to a drop in the same period a year ago, reaching 18,746 million ASK and 13,444 million RPK respectively. Both figures were particularly strong in the month of December due to increasing air travel during the festive season. Moreover, an Y-o-Y growth in passenger sales from Japan and South Asia is observed, attributed to stronger Yen against the Won as well as increasing air traffic demand in the Asian region.

Cargo Business
The cargo business has picked up since September 2009 and reached new heights in the fourth quarter of 2009. Revenue generated from the cargo segment was up 22% Y-o-Y, becoming the major growth driver in total revenue during the reporting period. Demand for world cargo rose steadily as reflected in an improvement in capacity and traffic, up 6% and 15.2% Y-o-Y to 3,179 million AFTK and 2,408 million FTK respectively. The increased cargo traffic coincided with the usual busy season for the cargo business ahead of festivities such as Thanksgiving and Christmas, while a recovery in consumer spending worldwide also fueled the growth in this segment.

2010 Plans
The airline has made significant operational progress such as refurbishment of new generation premium seats as well as fleet expansion last year. Upholding its long-standing commitment to achieving “Excellence in Flight” as it always does, Korean Air will continue its approach in expanding and optimizing its business in a prudent manner, while aiming to provide the best quality in its service in 2010.

In terms of fleet expansion, the airline has announced orders to add Boeing 787s and Airbus 380s to its fleet mix. The airline expects to add seven more aircrafts to its fleet in 2010 and another 15 in 2011. Total investment amount in fleet purchase, upgrade and refurbishment will increase by over 50% in 2010, showing the airline’s determination in bringing the best travel experience and ultimate comfort to its passengers in the air.

Korean Air will continue its concerted efforts to maximize the profitability of the cargo business through different initiatives. With the turnaround in world cargo demand and the pick up of exports volume, the airline expects that this business segment will be the growth driver again in 2010 and revenue generated will reach another peak.

Other business initiatives such as network expansion by developing high-potential new markets and stringent cost-control will continue in 2010. Korean Air is confident that its focused growth strategies will help overcome any challenges even though the outlook of the aviation industry remains uncertain.

* Exchange rate on December 31, 2009: 1 US Dollar = [1167.6] KRW

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