Korean Air reported this week that it has swung to a net profit in the second quarter after six consecutive quarters of losses, helped by lower fuel costs and large currency-linked gains. The world’s largest air cargo carrier is expected to see business recover gradually in the second half as South Korean exports improve and travel demand revives.

Korean Air posted a 78.5 billion won (US$63.56 million) net profit for the quarter to 30 June compared with net losses of 288.9 billion won a year earlier and 526.3 billion won in January-March. Quarterly revenue totalled 2.07 trillion won, down 16 per cent from a year earlier.

Domestic rival Asiana Airlines reported a second-quarter net profit of 47.1 billion won, recovering from a previous net loss.