UPDATE 1-Korean Air Q1 swings to loss on fuel, won

(Adds details, analysts, shares)

By Cheon Jong-woo

SEOUL, April 30 (Reuters) - Korean Air Co (003490.KS: Quote, Profile, Research, Stock Buzz), South Korea's top airline, announced a swing to a larger-than-expected quarterly net loss on Wednesday, pressured by higher fuel costs and a softer won currency <KRW=>.

After the result shares in Korean Air, which had in early trade as much as 4.58 percent on softer oil prices, pared the gain to 0.76 percent at 52,700 won as of 0209 GMT.

Korean Air faces unfriendly skies this year due to ever-rising fuel prices and a slowing global economy, although the company can partially soften the impact with surcharges.

The company is also struggling against intensified competition from budget carriers, especially Chinese airlines, analysts say.

"Jet fuel is too expensive to be cushioned only by surcharges. Manufacturers are also less and less eager to use air cargo amid higher oil prices," said Kang Kwangsook, an analyst at CJ Investment & Securities.

Since January, South Korea has allowed Korean Air to more than double its fuel surcharges for international flights.

To cope with record high oil prices Korean Air is also seeking to raise fuel surcharges and air fares, which a company official said both need government approvals.