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Korean Air’s 4Q profit triples on currency gains but weak cargo hits operating earnings

SEOUL, South Korea – Korean Air Lines Co. says fourth quarter profit more than tripled because of the stronger won, masking losses from a weak cargo business.

The South Korean flag carrier said Friday its net income rose to 140 billion won ($128 million) in the October-December period from 44.5 billion won a year earlier.

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It said the stronger won reduced its U.S. dollar debts, resulting in an accounting gain.

But weak cargo and a decline in passengers from Japan resulted in a 17.6 billion won operating loss, compared with 77 billion won operating profit a year earlier. The operating result excludes currency fluctuations to provide a clearer picture of financial performance.

The company blamed the drop in cargo shipments on weak trade. Outbound cargos also fell as local companies moved manufacturing facilities overseas.

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