Asiana Airlines reports $109 million net loss in second quarter

Asiana Airlines has recorded a net loss of 149.2bn South Korean won ($109.4 million), widening its losses further from 1.8bn won ($1.3 million) in last year's second quarter. It follows a net loss of 174.4bn won ($129.6 million) in the previous quarter. The airline said rising fuel costs and temporary labour costs, as well as increased business volume and maintenance/operation costs after rising exchange rates had contributed to its net loss. The won to dollar exchange rate resulted in an 85.6bn ($62.78 million) won loss from currency conversion. Revenues were up 10.6% to 1.74 trillion won ($1.28bn) while operating expenses were up 21% to 1.76 trillion won ($1.29bn). Fuel costs accounted for 32% of total operating costs and had increased by 86.1bn won ($63.2 million) in comparison to the same period last year. Its passenger business sales rose 6% to 1.1 trillion won ($806.9 million), while its cargo business sales rose 14.1% to 429.7bn won ($315.2 million). According to Maeil Business Newspaper, the airline plans to increase capacity in major long-distance routes such as New York and Rome in the third quarter. In addition, it will seek to operate irregular flights on major tourist routes during the peak summer season to improve its performance. Korean Air is awaiting US approval for its acquisition of Asiana Airlines after securing approval from the European Commission in February.