SEOUL, South Korea—Korean Air, South Korea's biggest airline, said Friday it sank to a loss in the second quarter as a weak won swelled its fuel costs.
The carrier lost 233.1 billion won ($192 million) in the three months ended June 30 compared with a profit of 78.5 billion won a year earlier. Sales surged 36.7 percent to 2.84 trillion won.
Shares in the airline, which released earnings before the stock market closed, rose 2.5 percent to 76,900 won as its operating profit -- seen as a direct indicator of business performance -- more than doubled.
Korean Air said its fuel bill increased by 30 percent from a year earlier to 865 billion won amid higher jet fuel prices and a 3.5 percent fall in the won against the dollar on average during the quarter.
But the airline expects to return to profit in the third quarter because passenger numbers are recovering from the global recession and the won has strengthened.
Operating profit -- seen as a direct indicator of business performance before taxes, dividends, asset sales and other items are figured into net profit or loss -- surged more than twofold to 352.1 billion won from 127.3 billion won last year.
Korean Air, the world's biggest international air cargo carrier, said its airfreight business improved in the second quarter as exports of liquid crystal displays, semiconductors and cell phones increased.
Cargo to Europe more than doubled and nearly doubled to North America and Japan during the three months.
