Asiana Airlines reported it returned to a net profit in the three months ended Dec-2012 with a profit of KRW21,600 million (USD19.8 million), compared to a net loss of KRW66,400 million (USD60.9 million) in 4Q2011, citing favourable exchange rates for the turnaround, as reported by Maeil Business and Yonhap. 4Q2012 sales reached KRW1475 billion (USD1353 million) and operating loss of KRW15,600 million (USD14.3 million). During the quarter, cargo load factor increased 1.7 ppt to 79.1%. For the full year 2012, Asiana reported a 5% increase in sales to a record KRW5880 billion (USD5219 million) while operating profit was halved to KRW179,400 million (USD159.2 million) as operating costs increased 10.4%. Full year net profit reached KRW62,500 million (USD55.5 million) compared to a loss of KRW29,900 million (USD26.5 million) in 2011. Meanwhile, Kumho Asiana Group reported KRW1470 billion (USD1305 million) in sales and an operating loss of KRW15,600 million (USD13.8 million) in 2012. Looking ahead in 2013, the carrier is targeting sales of KRW6300 billion (USD5727 million) and operating profit of KRW360,000 million (USD327 million).
Asiana reports operating loss in 4Q2012; targets USD327m in 2013
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Monarch Airlines: group receives new cash from Greybull Capital but profit outlook is down
The latest investment in the Monarch Group by its majority shareholder Greybull Capital avoided the loss of its ATOL licences and the possible suspension of operations. Moreover, it has given Monarch the opportunity to bridge the gap between now and the planned delivery of the first of its new 30 Boeing 737MAX aircraft in 2018.
Nevertheless, Monarch continues to face significant challenges. Europe's short/medium-haul markets are feeling significant downward pressure on unit revenue – particularly in the leisure markets that Monarch serves. This is due to overcapacity and concerns about terrorism in key Monarch markets. Brexit and the sharp devaluation of GBP (it has fallen by 30% against the EUR over the past 12 months) are further challenges for the LCC.
Although Monarch quickly quashed rumours of its financial difficulties in late Sep-2016 and then secured new funds, its commentary indicated that its profit for the year to Oct-2016 would be lower than in the previous year. It has an uneven track record of profitability and has often flown with close to empty cash reserves. Those reserves have been partially replenished, but only sustainable improvements in profitability will avoid the need for further cash calls in the future.