Korean Air has booked another quarterly loss. The airline is hit by the bad position of the South Korean currency and the high fuel costs. Because of the weak won, which is the currency of South Korea, it's more difficult for the airline to buy fuel. The fuel is priced in dollars so they have to pay more when they change won into dollars.
The biggest problem for the airline is the bad position of the South Korean won. It is one of the worst currencies that have performed so badly, the currency dropped about 30% compairing with the dollar. Thanks to that, the price that the airline has to pay for their fuel is very very high.
It's one of the biggest cargo carriers in the world and the management fears that after the falling demand of tickets from people, the cargo demands also will go down.
What do I have to say about it, it's an international problem. Korea has the disadvantage that their currency isnt so good but it's not only in Korea that the economy is bad. I found that the governement has to something, if they can do something of course, about the bad economy and especially about their weak currency.
Maybe the IMF can help the countries with the worst economy or currency. I hope that the economical crisis will stop soon.
source: http://news.bbc.co.uk/2/hi/business/7730064.stm
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