Asiana Airlines is the only airline in the world to have recorded a net loss in its most recent quarter, according to the US airline’s latest financial report.
Asiana reported a loss of $1.35bn for the year ended June 30, an 11% drop on the previous quarter.
That was an 8% decline from a year earlier, when it earned $1bn.
The airline has been under pressure since the airline, owned by a Chinese consortium, filed for bankruptcy protection last month.
The company had been planning to make a $10bn bid for US airline United Airlines.
But as part of a restructuring of the airline’s debts, Asiana announced on Tuesday that it would cut its dividend by 50% and will have to reduce its stock buybacks by a further 100% in the coming months.
The carrier also reported a net charge of $2.5bn for capital expenditures for the current quarter, a decline of $4bn compared with the previous year.
The drop in operating income comes as the airline is trying to reduce costs by investing in new planes, new aircraft leasing and technology upgrades.
“The bottom line is that the business is doing well and the airline remains profitable,” Asiana said in a statement.
As we have said in the past, we remain focused on making the right choices for our business and the customers and our shareholders.”