Korean Air said the global cargo slowdown is a major contributing factor as it booked a loss in the second quarter.
The carrier, the second-largest in the world by volume on international routes after Cathay Pacific last year, said exports from South Korea have slowed, while a decline in the Korea won had increased the cost of servicing its foreign currency debts.
The carrier‘s quarterly loss totaled $140 million (159 billion won) on revenue of 3.3 trillion won.
Cargo volumes fell 12 percent in the second quarter compared to a year earlier, with demand from Europe and the U.S. weak.
Korean Air has agreed to accept a C$5.5 million (US$5.4 million) fine imposed by Canada's Competition Bureau for being party to price fixing between 2002 and 2006.
The bureau has collected C$22.6 million in fines after several airlines including Air France-KLM, Qantas and British Airways admitted involvement in a price-fixing cartel.
Similar investigations into air cargo price fixing are under way in New Zealand and the U.S. while European watchdogs have also levied heavy fines on airlines in recent years.
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