Korean Air reports August 2004 Operating Results

Korean Air today reported its August 2004 Operating Results with an increase in overall passenger traffic of 4.0% and a 7.7% increase in yield despite the continuing rise in fuel prices. The increase in fuel costs contributed to fare increases during the summer peak period. The overall load factor was 75.6%, up 0.1% on the same period last year.

The airline’s international passenger figures saw a 6.6% rise in passenger traffic and a 10.3% rise in yield. The double-digit yield increase was recorded as Korean Air continues to add new routes and flight frequency to its Asia network.

In Japan, Korean Air increased its flight frequency to cope with the Japanese Thanksgiving holiday. In China, the newly launched routes between Incheon and Daegu in Korea to Shanghai, Urumchi, Qingdao, Shenyang and Beijing continue to fill up capacity. In Southeast Asia, new routes and additional flights have been added between Incheon and Penang, Taipei and Hanoi. Despite a 18% drop in passenger traffic in the domestic market due to competition from the Korean Express Train, Korean Air managed to record an overall positive yield.

On the cargo front, overall demand increased 11.6% with a 13% increase in yield, mainly contributed by the high profit margin of charter flights to China and strong export orders to the European region for Samsung and LG high-tech electronic products.

Korean Air Chairman and CEO, Mr. Y. H. Cho, said: “We are satisfied with the rise in passenger traffic and yield despite the continued rise in international oil prices. Our management team continues to be flexible and innovative in handling issues, such as combining low performing routes in August and setting up a nine-member fuel management team to minimize our fuel consumption costs.”

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