Korean Air announced that the company posted its biggest quarterly profit in history, dispelling recent worries about its financial instability (non-consolidated).
In the 3rd quarter of 2016, Korean Air recorded sales revenue of 3.06 trillion won, an operating profit of 447.6 billion won and a net profit of 428 billion won. The 447.6 billion won operating profit was the biggest ever quarterly operating profit for Korean Air, surpassing previous record of 416.5 billion won in the 3rd quarter of 2010.
Sales and operating profit was up by 4.7% 34.9% respectively, compared to the same period last year. The net income also returned to profit.
After reflecting a total loss of 825 billion won related to Hanjin Shipping in its financial statements for the past three quarters (2016 1Q~3Q), Korean Air has completely removed its financial risk brought by Hanjin Shipping. Furthermore, thanks to the biggest quarterly profit and the increase in capital, Korean Air reduced its debt ratio to 917%.
Korean Air spokesmen said, “As Hanjin Shipping is under court receivership, Hanjin Group will no longer provide further financial support to the company. Thus, Korean Air’s debt ratio will not be influenced anymore.” He added, “We will monitor closely on the market response and will put in our best effort to improve our financial structure.”
[Korean Air’s 2016 3Q results (non-consolidated)] (Billion Won)
|2016 3Q||2015 3Q||Notes||2016 accumulated|
|Net Income||428||-510||Return to Profit||80|