Korean Air Announces Q4 and Full-Year Performance for 2011

Seoul, 31 January 2012 – Korean Air, South Korea’s flagship airline, announced today its results for the fourth quarter and full year ended December 31, 2011.

The airline posted operating revenue of 3,062.1 billion KRW for the fourth quarter of 2011, up 7.7% compared to the same period last year, and an operating profit amounted to 76.8 billion KRW. International passenger and cargo businesses remained the major revenue contributors for the airline in Q4, accounting for 55.1% and 29.3% of the operating revenue respectively. Compared to the same period last year, net income for Q4 returned to the black and reached 125 billion KRW.

For the full year of 2011, the airline recorded operating revenue of 11,805.3 billion KRW, up 4.7% year-on-year, and operating profit of 394.1 billion KRW. However, due to a surge in jet fuel expenses, a net loss is resulted during the period.

International Passenger Business

During the quarter, it saw increased traffic across all routes, including Americas (up 12%), South-east Asian countries (up 12%), and China (up 14%); the international passenger segment recorded a Y-o-Y growth of 10.6% and 10.2% in passenger carrying capacity and traffic, reaching 21,081 million ASK and 15,774 million RPK respectively.    Overseas inbound traffic lifted 15% compared to the same period last year.

According to IATA, international air traffic is expected to grow by 5.2% in 2012, in which Asia region growth rate is projected to exceed 7%, and hence passenger traffic is expected to continue on a steadily upward trend. In addition, with the introduction of new routes (e.g. Incheon – DaNang, Incheon – Gatwick, Incheon – Urumqi and Incheon – Nairobi) and stepping up frequency on selected routes, such as Busan – Hong Kong, Incheon – Qingdao, Incheon – Tianjin, Jeju – Beijing and etc., the airline sees potential growth in passenger traffic.

With the latest addition of more fuel efficient aircrafts to the fleet, including Airbus A380 and Boeing B777-300ER, the airline is expected to see improvement in profitability.

Cargo Business

Cargo traffic recorded a year-on-year fall of 6.7% to 2,284 million FTK as it saw a Y-o-Y decrease of 10% and 4% in Korea outbound traffic and transit traffic respectively. While outbound cargo traffic from China reported a slump, outbound traffic from south-east Asian Countries, Japan, Americas and Europe recorded increases of 6%, 5%, 6% and 3% respectively. In Q4, it saw the return of wet-lease aircraft in October and November for profitability improvement. Charter flights to Sao Paulo and Lima were also put into operation in the quarter.

Going into 2012, cargo traffic is expected to be on a steadily upward trend with the Free Trade Agreement between Europe and Korea and The London Olympic Games. Korean Air will strive to enhance profitability and sustain growth by focusing operation on new markets development. Korean Air also sees the potential of leveraging Brazil as a hub and builds the cargo network in Latin America.

Korean Air will continue to expand its business prudently while enhancing the quality of its service in 2012. 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 December 31, 2011: 1 US Dollar = [1153.3] KRW

Korean Air TV Commercial Series, Canada, Heliski

Korean Air Monthly Video Newsletter, January 2012

Korean Air to Introduce Direct Flights to Da Nang Starting January

Korean Air is to launch direct flights between Incheon International Airport in Seoul and Da Nang starting from 19th January 2012 with two flights per week.

Korean Air’s new service to Da Nang, the airline’s third destination in Vietnam, will be operated by B737-800 aircraft with a total capacity of 145 seats. The flight will depart Seoul Incheon every Thursday and Sunday at 19:00 and will arrive in Da Nang at 22:10 on the same day. The return flight will depart Da Nang at 23:20 every Thursday and Sunday and will return to Seoul Incheon at 05:30 on the next day. With the launch of this new route, Korean Air connects passengers from all destinations worldwide to Da Nang via Incheon International Airport, its award winning hub, while offering utmost comfort and ease during the journey.

Da Nang, Vietnam's third largest city after Ho Chi Min (in the south) and Hanoi (in the north), is rich with cultural heritage; as well as with a setting of spectacular natural beauty, this popular tourist attraction is renowned for its luxury resorts and restaurants in ‘Non Nuoc’ beach looking over pure white sandy beach and the sea.

The city also has more tourist attractions such as ‘Hue’, a former capital of Vietnam, and ‘Hoi An’, an ancient town - both of which are designated by UNESCO as World Heritages of Vietnam. Whether a traveler is looking for a luxurious retreat, or a cultural journey, Da Nang is the answer to all.

Korean Air currently operates 18 flights a week between Seoul and Vietnam, including the 7 flights per week service on the Incheon-Hanoi route and the 11 flights per week service on the Incheon-Ho Chi Min route. With the addition of the Incheon-Da Nang route, Korean Air will now fly to Vietnam 20 times a week, covering the three largest cities in North, South and Central area.

This new route further demonstrates the airline’s continued commitment to passengers – offering its extensive global network with a wider range of options for each of its passengers, delivering true “Excellence in Flight”.

KOREAN AIR RECEIVES WORLD TRAVEL AWARD 2011 WORLD’S MOST INNOVATIVE AIRLINE 


January 12, 2012 - KOREAN AIR, last night 11 January, received the accolade of being named the World’s Most Innovative Airline at The World Travel Awards Grand Final Ceremony 2011, held in Doha, Qatar. Founded in 1993 and described as the 'Oscars' of the travel and tourism industry, the evening marks the culmination of a year-long search for the very best travel and tourism brands in the world, and awarded the winners from WTA’s regional heats. The award was received by, Korean Air’s Managing VP for Europe, Middle East & Africa, Mr. Jaeho Kim who said: “Korean Air is honoured to be recognised for the efforts we have made in changing the way our customers view air travel. We are particularly proud of the innovation shown in the unique design of our A380 aircraft – the business class only deck, the Duty Free Showcase and the Celestial Bar all add to a memorable inflight experience for our passengers and a return to the days when flying was glamorous!” Manon Han, Executive Vice President, World Travel Awards, said: “The past year has been one of the most challenging yet for aviation, however, Korean Air has bucked the trend and gained market share by providing travellers with ground-breaking levels of service. For this reason, Korean Air has been named ‘World’s Most Innovative Airline’ by World Travel Awards.” 2011 was the year Korean Air introduced the magnificent A380 aircraft to its fleet and proved beyond a doubt that it is a truly innovative airline. Choosing to create a spacious environment for its passengers, the A380 has only 407 seats and Korean Air was the first airline to announce that the entire upper deck would be devoted to the business traveller with just 94 ‘Prestige’ business class seats. This year also marked the debut of Korean Air’s unique and stylish on-board Celestial Bar in addition to its Duty Free Showcase which was fitted into all A380 interiors to provide passengers with the ultimate on-board experience.