Korean Air concluded a challenging FY05 with net earnings of KRW202.3 billion ($205.6 million), a 61.1% plunge from its 2004 profit of KRW519.5 billion. Chairman and CEO Yang-Ho Cho acknowledged last year's difficulties, saying, "High fuel prices throughout the year combined with the pilots strike in December caused a decrease in the airline's net profit. However, our efforts to enhance profitability through cost savings and fuel surcharges brought about an increase in Korean Air's overall operating profit." Indeed, operating profit rose 12.6% to KRW432.2 billion on a 5.2% gain in revenues to KRW7.58 trillion and a 4.8% climb in expenses to KRW7.15 trillion.

Korean attributed improved revenues to "solid growth in international passenger traffic," although it said its cargo business suffered "from setbacks in the global IT industry." In addition, a four-day pilots strike last month (ATWOnline, Dec. 13) resulted in cancellation of more than 1,100 flights and reported losses of approximately $183.1 million.

Based on calculations using third-quarter results, the carrier posted a fourth-quarter net profit of KRW31.3 billion and an operating profit of KRW25.5 billion.