Fuel, foreign exchange lead Korea Air to $324M 1Q loss

SEOUL, South Korea (AP) - Korean Air Lines Co. said Wednesday it recorded a first-quarter net loss on higher fuel costs and unfavorable foreign exchange rates.

Korean Air, South Korea's biggest passenger carrier, lost 325.5 billion won ($324 million) in the three months ended March 31, the company said in a statement. It posted net profit of 130.8 billion won a year earlier.

Sales during the quarter rose 11.5 percent to 2.26 trillion won ($2.25 billion) from 2.03 trillion won a year earlier.

Korean Air said international passenger revenue rose 10 percent, while cargo revenue gained 18 percent.

Fuel expenses, however, jumped 49 percent on the soaring price of jet fuel and increased consumption.

The airline also booked a foreign exchange loss of 377.42 billion won ($376.42 million), it said.

The South Korean won skidded to two-year lows against the U.S. dollar during the first quarter.

Shares in Korean Air, which released earnings results about one hour after the stock market opened, were trading 1.7 percent higher at 53,200 won ($53).