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Asiana Airlines sees deepest pax yield contraction in third quarter, 14.1%

Asiana Airlines CEO, Chan Buk Park
Asiana Airlines CEO, Chan Buk Park

Asiana Airlines reported a 14.1% reduction in passenger yield in the three months ended 30-Sep-2009, for the largest reduction in more than 11 quarters, as domestic yield slipped 13.0% and international yields were down 13.4% year-on-year.

Asiana Airlines passenger and freight yield growth (year-on-year change; %): 1Q2008 to 3Q2009

Cargo yield slumped 16.4% in the quarter, although this was a slight improvement from the 17.5% reduction in 2Q2009. 

Asiana Airlines domestic and international passenger yield growth (year-on-year change; %): 1Q2008 to 3Q2009

However, it should be noted that the 3Q2009 reductions come off a strong base in 2008, with double-digit passenger and cargo growth being witnessed in 3Q2008.

Load factors on the improve

Also in the quarter, the carrier experienced a 2.4 ppt load factor improvement to 74.2%, aided by a 4.7 ppt domestic load factor improvement (to 64.9%) and a 2.0 ppt gain in international load factors to 74.9%, for the highest load factor level since 2Q2007.

Asiana Airlines passenger load factor PLF: 1Q2008 to 3Q2009

Asiana continues to reduce domestic capacity

Traffic (RPKs) was up by 3.6% year-on-year in the third quarter, as a 4.6% increase in international traffic more than offset a 10.0% domestic reduction. Capacity (ASKs) was up only marginally (+0.2%) in the quarter, due to a 16.6% domestic capacity reduction, the largest reduction for the carrier in 11 quarters.

Asiana Airlines passenger capacity (ASK) growth: 1Q2007 to 3Q2009

Asiana return to net profitability, but losses at an operating level

As previously reported, Asiana Airlines reported a return to net profitability in the three months ended Sep-2009, with a net profit of USD607,000.  However, on an operating level, the carrier reported a loss of USD25 million, compared to a profit of USD50 million in the previous corresponding period.

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