Work for Korean
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Work for Korean
Korean Air set for sixfold jump in earnings
Bloomberg in Seoul
Jan 23, 2010
Korean Air Lines, South Korea's largest airline, expects to boost operating profit sixfold this year as the economic rebound revives demand for passenger and cargo flights. Operating profit may jump to 800 billion won (HK$5.42 billion) this year from 133.4 billion won last year, the Seoul-based carrier said. Sales may rise 13 per cent to 10.6 trillion won.
Korean Air aims to boost passenger traffic 4.1 per cent this year and cargo volume 11 per cent as a stronger won and easing job concerns spur travel and consumer spending. The airline, the world's largest international freight carrier, posted a third straight net income last quarter on Korean exports of mobile phones, computer chips and flat-screen television panels.
"The economic recovery has spurred pent-up demand for travel and cargo," said Ryu Je-hyun, an analyst at Mirae Asset Securities. "Earnings should continue to grow this year with demand returning to pre-recession levels." Ryu rates Korean Air a "hold".
The fourth-quarter net income of 122.3 billion won was in line with the 120 billion won median of 16 analyst estimates. The airline had a loss of 644 billion won a year earlier. Sales fell 4.9 per cent to 2.58 trillion won.
Operating profit, or sales minus the cost of goods sold and administrative expenses, rose almost sevenfold to 154 billion won from 22.6 billion won a year earlier.
Fuel expenses, the single biggest cost, decreased 22 per cent to 785.2 billion won, the carrier said.
The won gained 8.2 per cent against the dollar last year, cutting the repatriated value of the carrier's dollar-denominated fuel bill and US$5 billion of dollar-denominated debt. It also made overseas travel cheaper for South Koreans.
Korean Air fell 2.2 per cent to close at 58,600 won in Seoul trading, compared with the key Kospi index's 2.2 per cent drop. The stock has gained 6.7 per cent this year.
The airline plans to spend 2.13 trillion won this year, 28 per cent more than its 2009 estimate. Aircraft investment is to jump 53 per cent to 1.98 trillion won with seven new planes.
Korean Air's international passenger traffic rose 11 per cent last quarter and the carrier filled 71.7 per cent of available seats, 3.1 percentage points more than a year earlier.
Freight traffic jumped 15 per cent and the carrier packed 75.6 per cent of cargo space last quarter, compared with 69.7 per cent last year.
Bloomberg in Seoul
Jan 23, 2010
Korean Air Lines, South Korea's largest airline, expects to boost operating profit sixfold this year as the economic rebound revives demand for passenger and cargo flights. Operating profit may jump to 800 billion won (HK$5.42 billion) this year from 133.4 billion won last year, the Seoul-based carrier said. Sales may rise 13 per cent to 10.6 trillion won.
Korean Air aims to boost passenger traffic 4.1 per cent this year and cargo volume 11 per cent as a stronger won and easing job concerns spur travel and consumer spending. The airline, the world's largest international freight carrier, posted a third straight net income last quarter on Korean exports of mobile phones, computer chips and flat-screen television panels.
"The economic recovery has spurred pent-up demand for travel and cargo," said Ryu Je-hyun, an analyst at Mirae Asset Securities. "Earnings should continue to grow this year with demand returning to pre-recession levels." Ryu rates Korean Air a "hold".
The fourth-quarter net income of 122.3 billion won was in line with the 120 billion won median of 16 analyst estimates. The airline had a loss of 644 billion won a year earlier. Sales fell 4.9 per cent to 2.58 trillion won.
Operating profit, or sales minus the cost of goods sold and administrative expenses, rose almost sevenfold to 154 billion won from 22.6 billion won a year earlier.
Fuel expenses, the single biggest cost, decreased 22 per cent to 785.2 billion won, the carrier said.
The won gained 8.2 per cent against the dollar last year, cutting the repatriated value of the carrier's dollar-denominated fuel bill and US$5 billion of dollar-denominated debt. It also made overseas travel cheaper for South Koreans.
Korean Air fell 2.2 per cent to close at 58,600 won in Seoul trading, compared with the key Kospi index's 2.2 per cent drop. The stock has gained 6.7 per cent this year.
The airline plans to spend 2.13 trillion won this year, 28 per cent more than its 2009 estimate. Aircraft investment is to jump 53 per cent to 1.98 trillion won with seven new planes.
Korean Air's international passenger traffic rose 11 per cent last quarter and the carrier filled 71.7 per cent of available seats, 3.1 percentage points more than a year earlier.
Freight traffic jumped 15 per cent and the carrier packed 75.6 per cent of cargo space last quarter, compared with 69.7 per cent last year.
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With >16 years to CMD in CX it may be a gd option
Time CMD ? 15 or 20 years poll? Where are the facts?
CX are only doing moderate expansion & interested in setting up subsidiaries.
Thus net fleet growth (New - replacements) will not nearly offset Age 65.
Also many many pilots joined 2000-2001 ( along with ASL coming online)
Means that alone would have pushed CMD out a few years. Now Age 65 and a more conservative net fleet expansion will certainly put this figure in the high teens, or even 20's for S/O's.
With the economy is improving and >16 years to CMD in CX.
Together with continual degrading of contracts (Not that it matters anyway, since they just ignore them) It may mean that now is a good time to look around. I believe hiring is starting again at Etihad, US, Korean it may prove a good move if you want a CMD.
RQ hrs on heavy a/c helps..
On that matter has anyone got real facts on age demographics in CX?
CX are only doing moderate expansion & interested in setting up subsidiaries.
Thus net fleet growth (New - replacements) will not nearly offset Age 65.
Also many many pilots joined 2000-2001 ( along with ASL coming online)
Means that alone would have pushed CMD out a few years. Now Age 65 and a more conservative net fleet expansion will certainly put this figure in the high teens, or even 20's for S/O's.
With the economy is improving and >16 years to CMD in CX.
Together with continual degrading of contracts (Not that it matters anyway, since they just ignore them) It may mean that now is a good time to look around. I believe hiring is starting again at Etihad, US, Korean it may prove a good move if you want a CMD.
RQ hrs on heavy a/c helps..
On that matter has anyone got real facts on age demographics in CX?
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This may be a little off topic, but another reason to leave long term is the impending degradation of the expat housing allowance. Read between the lines of the latest crew news when NR talks of 'when does an expat become a local now that someone may be in HK for up to 30+ years?' You can read this as, 'we want to give you a full expat package to 15; maybe 20 years, and then cut it down to a flat cash rate, say around 24000'. The implication of his statement is that you shouldn't qualify for an expat package after a certain time period. This is a typical CX divide and conquer strategy as you can expect they will offer a flat rate to local package SO/FOs at the same time. For those of us in HK I would recommend to get your place payed off then get a base ASAP. If you come back to HK for a captaincy then you clearly risk having your housing allowance pulled from under your feet when they negotiate further 'improvements'. This of course will allow the company to hire DE captains on a local package as they won't be able to get people to come back to HK as captains.
While I am not sure that Korean is the place to go, I think crewsunite is on the money when he says those of us who have missed out on the command bonanza of the last 20 years should certainly have a Plan B that does not include CX.
While I am not sure that Korean is the place to go, I think crewsunite is on the money when he says those of us who have missed out on the command bonanza of the last 20 years should certainly have a Plan B that does not include CX.
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Dont' be fooled
I want to make sure you all know that the grass is NOT greener on the other side. Now CX is certainly not perfect but it is still the best gig out there, Trust me! I know a few boys at Korean and Qatar and Emirates and Eatyourhat (Etihad) and let me tell you that you would sadly be mistaken if you think any of these places are good, they are NOT! The Middle east SUCKS!
The goal of most of the airlines is to lower conditions. They all work together to find out how much pilot's will take. We at CX have lead the pack in taking it in the pooper! Talk to the boys from Singapore. Until the industry turns around (many years), more retire, less learn to fly, IT WILL CONTINUE!
I personally would like to go to a regional. A small carrier where maybe people like each other and maybe the company likes their employees. Eastern Airways in the UK maybe one of these companie?. This long haul stuff, middle of the night, aggressive training and managment, is for the birds! If you don't like it why be miserable, just leave.
This business is always going to be a cycle. We are lucky we have jobs at all I tell you. It is really bad out there. I know people (pilot's) losing their homes, cars and just about everything. You could also be Haitian!!!
Don't always look at what you don't have but what you do have!
Always be safe my friends. Life is short very short! Just this last month, A good friend got cancer, another is dying of cancer, a good friends Mom dropped dead at 59.
I wake every day and look at the Sun and smell the flowers now and thank god I am still alive.
Gentlemen and ladies. IT IS JUST A JOB!
The goal of most of the airlines is to lower conditions. They all work together to find out how much pilot's will take. We at CX have lead the pack in taking it in the pooper! Talk to the boys from Singapore. Until the industry turns around (many years), more retire, less learn to fly, IT WILL CONTINUE!
I personally would like to go to a regional. A small carrier where maybe people like each other and maybe the company likes their employees. Eastern Airways in the UK maybe one of these companie?. This long haul stuff, middle of the night, aggressive training and managment, is for the birds! If you don't like it why be miserable, just leave.
This business is always going to be a cycle. We are lucky we have jobs at all I tell you. It is really bad out there. I know people (pilot's) losing their homes, cars and just about everything. You could also be Haitian!!!
Don't always look at what you don't have but what you do have!
Always be safe my friends. Life is short very short! Just this last month, A good friend got cancer, another is dying of cancer, a good friends Mom dropped dead at 59.
I wake every day and look at the Sun and smell the flowers now and thank god I am still alive.
Gentlemen and ladies. IT IS JUST A JOB!
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Agree with last post to a certain level, it is just a job and when viewed agains tragedy that needs to be considered but as expats we tend to live very closely to our work and thus it inevitably becomes more. Also agree with the sentiment to look closely at what you do have rather than don't have.
However airline managers are only interested in cutting our conditions; shareholders get more then and the managers bonus' increase. It is up to us to counter that. We are hopeless industrially as we are all selfish and unprepared to act cohesively to improve our lot. Fortunately the basic laws of supply and demand seems about to help us.
I disagree strongly that conditions won't improve. Barring further GFC's and 911's, things will (and already are) improving economically as will our fortunes. Before the GFC airlines were desperate for pilots and through the downturn very few newbies have been training - why would they for such a rotten career? Even if they wanted to train, academies have laid off staff and won't be able to meet the airlines needs when the inevitable China-led economic boom resumes.
With so many aircraft on order globally (not just Emirates, Ethihad etc) but also in China, India etc and new markets where LCC's are now booming, where will pilots come from? Airlines haven't needed to care about this for the last 2 years but they potentially face a massive crisis far worse than the shortage of 2007. The GFC only deferred the problem. That's a great scenario for us.
Cathay pilots will benefit and not only growth will occur but other airlines will poach. They will have to in order to survive. Dragonair may well not exist in 5 years as the FO's over there already know that CX's destruction of the airline has destroyed their chance of commands. The majority have applications with growth-minded airlines and have had or are about to be interviewed for jobs elsewhere, particularly in the middle east.
So whilst Korean isn't so attractive (too many days away from home) yet, the conditions there and at all airlines will need to improve in order to attract the right talent. Far from believing the situation where conditions for pilots being savaged by eager managers is commonplace, I suspect this will be reversed in order for those airlines to survive.
Maybe I'm an optimist but the ratio of qualified/quality pilots bums to the seats they are needed to fill is looking very much to our benefit. Don't accept crap if you don't need to and always work to improve the conditions you are employed under.
However airline managers are only interested in cutting our conditions; shareholders get more then and the managers bonus' increase. It is up to us to counter that. We are hopeless industrially as we are all selfish and unprepared to act cohesively to improve our lot. Fortunately the basic laws of supply and demand seems about to help us.
I disagree strongly that conditions won't improve. Barring further GFC's and 911's, things will (and already are) improving economically as will our fortunes. Before the GFC airlines were desperate for pilots and through the downturn very few newbies have been training - why would they for such a rotten career? Even if they wanted to train, academies have laid off staff and won't be able to meet the airlines needs when the inevitable China-led economic boom resumes.
With so many aircraft on order globally (not just Emirates, Ethihad etc) but also in China, India etc and new markets where LCC's are now booming, where will pilots come from? Airlines haven't needed to care about this for the last 2 years but they potentially face a massive crisis far worse than the shortage of 2007. The GFC only deferred the problem. That's a great scenario for us.
Cathay pilots will benefit and not only growth will occur but other airlines will poach. They will have to in order to survive. Dragonair may well not exist in 5 years as the FO's over there already know that CX's destruction of the airline has destroyed their chance of commands. The majority have applications with growth-minded airlines and have had or are about to be interviewed for jobs elsewhere, particularly in the middle east.
So whilst Korean isn't so attractive (too many days away from home) yet, the conditions there and at all airlines will need to improve in order to attract the right talent. Far from believing the situation where conditions for pilots being savaged by eager managers is commonplace, I suspect this will be reversed in order for those airlines to survive.
Maybe I'm an optimist but the ratio of qualified/quality pilots bums to the seats they are needed to fill is looking very much to our benefit. Don't accept crap if you don't need to and always work to improve the conditions you are employed under.
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Saturn, I appreciate your comments, however I would like to clarify your desire to work for a "regional"; I'm assuming you refer to narrow-body transcontinental flying, not the $30,000/yr-6 legs/day-13+hr duty day-reduced rest overnight-regionals of the U.S. Though it is so cool to be able to fly for almost free 
