Korean Air, Asiana to reorganize cargo services amid losses
South Korea’s two full-service carriers said Aug. 19 they will suspend some domestic cargo services beginning in October as parts of efforts to trim its ballooning losses.
Starting Oct. 1, Korean Air and Asiana Airlines said they plan to halt cargo delivery services at the country’s three regional airports in Daegu, Cheongju and Gwangju where cargo demand on domestic routes is low.
The move comes as they airlines posted hefty losses in the first half of the year due mainly to the won‘s weakness against the US dollar, which jacked up fuel costs and financial costs related to foreign currency-denominated debts.
“The three airports have continued to report losses in spite of diverse efforts to improve profitability in the cargo business. So we decided to stop providing freight delivery services in the airports,” a Korean Air spokeswoman said over the phone.
Cargo delivery services will remain available in Gimpo, Jeju and other domestic airports, she said.
“The restructuring of the cargo business is part of the company’s efforts to seek profitability. Asiana’s domestic cargo services will be available on the Gimpo-Jeju route only,” an Asiana spokesman said.
By Ram Garikipati and newswires (email@example.com)