Korean Air narrows loss as cargo grows; Ethiopian gets loan to expand

© Senohrabek

Korean Air’s net loss fell in 2016 to KW556.8bn ($485.9m), compared with a net loss of KW562.97 bn in 2015. Its cargo division did well, recording an 8% rise in volumes in the fourth quarter, year-on-year, despite a 4% fall in Korean outbound volumes.

FTKs in the fourth quarter grew 5.4%, while yields also grew 2.5%, to $0.25. The carrier said it planned to “improve profitability by transporting high-yield cargo items and providing flexible capacity”.

The group’s improved overall loss was helped by better sales and reduced costs, but foreign currency headwinds, as well as the bankruptcy of its affiliate, Hanjin Shipping, pulled the final results down.

On a separate note, Ethiopian Airlines has received a $159m loan from the African Development Bank (AfDB), to help its expansion plans to build a fleet of 140 aircraft in the next decade, up from some 80 now. The airline also plans to invest in a new cargo terminal, hangar and headquarters.