South Korea’s largest carrier Korean Air has reported an increased net loss last year as a stronger US dollar inflated the value of its foreign-denominated debts.
At the same time, the airline saw its operating swing back into the black, helped by a recovery in the global air cargo industry, falling oil prices and cost-cutting.
Annual net loss in 2014 rose to 458 billion won ($A535.77 million) from 384 billion won a year earlier, the airline said on Thursday. Sales were up 0.5 per cent to 11.9 trillion won.
Korean Air currently has $US8.25 billion in dollar-denominated debt, which has become costlier to maintain as the greenback has gained in value over the Korean won.
Operating profit stood at 395 billion won for the year, compared to a loss of 19.6 billion won in 2013.
The company said it expected earnings to improve this year on lower fuel costs.
Fourth quarter operating profit was 152.9 billion won, up from 17.8 billion won a year before.
