Manufacturing relocation hurts Korean
Korean Air Lines made an operating loss of 17.6 billion won ($16.1 million) excluding currency fluctuations in its fourth quarter (October to December). This compared with an operating profit of 77 billion won ($70.6 million) in Q4 2011.
The carrier's net income more than tripled during the quarter, but this was entirely down to an improved exchange rate against the dollar.
Export shipments of airfreight slumped as a result of weakening demand and relocation overseas by several Korean manufacturers, the company said. Meanwhile, passenger numbers from Japan were also sharply down.