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Korean Air posts 2020 gain on cargo transport inspite of low travel demand

SEOUL, Feb 4 (Reuters) – Korean Air Strains posted on Thursday a consolidated functioning earnings of 109 billion gained ($97.55 million) in 2020, as cargo gross sales assisted offset a slump in passenger journey on the again of coronavirus restrictions.

Whilst South Korea’s premier airline managed to prevent an once-a-year loss in 2020, working profits have been down 58% from 257 billion gained in 2019, the firm claimed in a regulatory filing.

Cargo product sales jumped 66% to 4.3 trillion received in 2020 from a yr previously, even though passenger profits slumped 74%. Cargo revenue were being underpinned by the airline’s strategy to maximize the procedure price of cargo planes and utilise idle passenger planes for transport, the airline said in a statement.

“Demand for COVID-19 diagnostic kits and automobile elements has elevated, and some sea cargo demand from customers has transferred to air transportation, driving the enhance in air cargo sales,” it said.

Korean Air is a single of the world’s biggest air cargo carriers and has benefited from powerful demand from customers at a time when the collapse of passenger traffic has reduced obtainable transport room.

The fourth quarter, coinciding with electronic product or service launches and Christmas, is the peak time for air freight and costs were up strongly owing to the ability crunch and the begin of vaccine transportation.

Air cargo demand and freight premiums remained unusually sturdy in January due to the fact of tight capacity, in accordance to information provider CLIVE Details Companies.

Korean Air’s acquisition of Asiana Airways Inc, announced last year, is on monitor and awaiting approval from antitrust authorities, a spokeswoman claimed on Thursday.

Shares in Korean Air closed up 1.3%, when compared to a 1.4% slide in the broader industry.

South Korea’s President Moon Jae-in known as on Wednesday for seamless preparations for coronavirus vaccinations, as regulators approved imports of Pfizer’s COVID-19 shot and the state well prepared to begin inoculations afterwards this thirty day period.

Korean Air is aiding with vaccine transportation. ($1 = 1,117.4300 gained) (Reporting by Joyce Lee Additional Reporting by Jamie Freed in Sydney Enhancing by Ana Nicolaci da Costa)