Korean Air's profit plunges due to higher oil prices

0 Comments | AFP, May, 2005

SEOUL (AFP) — Korean Air reported net profits plunging 70 percent year-on-year during the first quarter to March, with the South Korean airliner saying the fall was largely due to higher oil prices.

Net profit for the three months stood at 52.6 billion won (52.8 million dollars), 69.7 percent down from 173.4 billion won a year ago, they said in a statement reported to the Korea Exchange on Wednesday.

"Fuel costs surged some 20 percent year-on-year, causing the profit to decrease," read the statement.

Sales increased 2.5 percent year-on-year to 1.7 trillion won during the January-March period, with operating profit falling 16.4 percent to 61 billion won, it said.

A growing number of tourists from Japan and China helped boost sales on international...