S Korea's flag carrier, Korean Air, has posted a net profit of KRW75.7 billion (US$81.06 million) for the three months ended December 31, an increase of 157.8 per cent year on year.

For the fourth quarter, operating profit rose by 455.1 per cent to KRW143.4 billion.

A company statement described 2006 as a "strong year" for the airline, which recorded a full year net profit of KRW344.7 billion, up 72 per cent over 2005.

The results were attributed to greater demand for air travel, as well as a favourable exchange rate, lower oil prices towards the end of the year and effective cost control measures.

"In addition to the favourable external factors, I give great credit to our team for their insight and flexibility in overcoming challenges and capturing business opportunities. The fast changing market and keen competition will again put our ability and strategies to the test in 2007," said company president Jonghee Lee.

Total revenues for the fourth quarter of 2006 increased 6.7 per cent to KRW2,115 billion, compared with KRW1,982 billion in the fourth quarter of 2005.

International and domestic passenger revenue rose 15.6 per cent and 4.7 per cent respectively in the fourth quarter of 2006 compared to the corresponding period in 2005. Apart from China, international routes showed strong demand, exceeding the supply increase. The airline recorded a 13.6 per cent increase in yield year on year for international passengers in the fourth quarter of 2006.

Korean Air remained the world's top commercial cargo carriers in 2006 despite the cargo unit suffering because of the appreciation of the South Korean won. To counter this effects, the carrier "deployed strong cargo capacity supply to southeast Asia and China's transit cargo market where demand for air cargo shipment was higher".