Korean Air orders seven Boeing, Airbus aircraft

Korean Air Lines Co, the country's largest carrier, has announced the purchase of seven new aircraft after posting a 49 per cent increase in quarterly profit. Earnings from affiliates and a stronger currency offsetting higher fuel costs have resulted in stronger bottom lines for the quarter.

Korean Air said it will buy two Boeing 777-300ER aircraft and five Airbus 330-200s in a regulatory filing.  The planes have a list price of about $1.57 billion and are due for delivery in the period 2013 to 2015.

Korean Air also takes delivery of its first A380 aircraft this month. It will take delivery of five of these superjumbos this year

The airline's net income climbed 49 per cent to 282.1 billion won ($264 million) in the three months to 31 March, from a restated 188.7 billion won a year earlier, it said in the regulatory filing, based on consolidated figures.

Sales were up 7.2 per cent, to 2.82 trillion won.

Earnings from affiliates jumped more than nine-fold to 137.6 billion won, the carrier said without elaboration.

The carrier said it expects freight demand to rebound from the current quarter, partly because customers are turning to other suppliers following production disruptions caused by the March 11 earthquake and tsunami in Japan.

Korean Air owns stakes in Hanjin Shipping Holdings Co, parent of South Korea's largest shipping line, and Korea Airport Service Co, besides having an air-cargo venture in China.