Korean Air Q1 turns to net loss on fuel, won
SEOUL, April 30 (Reuters) - Korean Air Co (003490.KS), South Korea's top airline, on Wednesday announced a swing to a larger-than-expected quarterly net loss, pressured by higher fuel costs and a softer won currency KRW=.
Korean Air, the world's largest air cargo carrier, reported a 325.5 billion won ($324.3 million) net loss, in the first quarter ended on March 31, steeper than a forecast for 265.8 billion won loss in a Reuters poll of seven analysts.
That compared with a 130.8 billion won profit a year ago and a revised 35.3 billion won loss in the fourth quarter of 2007.
Korean Air faces unfriendly skies this year due to ever-rising fuel prices and a slowing global economy, although the company is likely to offset fuel costs with surcharges.
The company is also struggling against intensified competition from budget carriers, especially Chinese airlines, analysts say.
Reflecting the worries, shares in Korean Air, with a market value of $4 billion, plunged 30.5 percent in the January-March period, underperforming a 10.2 percent fall in the wider market . ($1=1003.7 Won) (Reporting by Cheon Jong-woo; Editing by Marie-France Han and Keiron Henderson)
