Korean air cargo booms, up 3,300pc in first quarter

AIRFREIGHT operators in South Korea are benefitting from a strong recovery, according to a report from the London-based emerging market specialist Business Monitor International (BMI) with profit soaring 3,300 per cent in the first quarter.

In April 2010, Korean Air reported record results for the first quarter. Operating profits for the company increased to KRW220.2 billion (US$197.6 million) - up 3,300 per cent year on year.

"Despite the massive slump in airfreight demand in 2009, creating a low baseline for comparisons, BMI believes that the results are still impressive and are the best for the carrier since the third quarter of 2008. Korean Air is now expecting profits for the year to reach KRW1 trillion, compared with its previous estimates of KRW800 million," the report said.

Cargo utilisation for Korean Air increased to 77.1 per cent in the first quarter compared with 70.6 per cent last year. Meanwhile, cargo revenue for the carrier was up 57 per cent, with both the Japan and China routes exceeding their pre-crisis performances. Demand is expected to stay strong in the future as a result of rebounding exports of IT products and trade agreements between Korea and India, and also the EU.

BMI expects a strong recovery in South Korean airfreight this year. We expect total volume of cargo shipped by air to grow by 7.8 per cent to 3.69 million tonnes, more than offsetting the 4.1 per cent contraction experienced in 2009.
(Source:www.schednet.com)