July 31 (Bloomberg) -- Asiana Airlines Inc., South Korea's second-biggest carrier, posted its first loss in almost three years as the price of jet fuel, the airline's single-biggest expense, rose to a record.

The loss was 19.2 billion won ($19 million) compared with a profit of 38 billion won a year earlier, the Seoul-based airline said in an e-mailed statement today. Sales rose 21 percent to 1.04 trillion won.

Jet fuel surged an average 87 percent from a year earlier, eroding earnings at airlines worldwide and forcing at least 25 carriers to cease flying or file for bankruptcy. Korean Air Lines Co., the country's largest carrier, has also forecast an operating loss for the quarter.

``With this level of fuel prices, the result was inevitable,'' said Kim Seung Churl, a Seoul-based analyst at Meritz Securities Co. in Seoul. ``It's difficult to see how airlines can be profitable unless jet fuel prices drop.''

Asiana had an 18 billion won operating loss. The loss was the first since the third quarter of 2005 when pilots held a 25- day strike.

The airline declined 0.6 percent to 4,770 won, the lowest in two weeks, at the close of trading in Seoul. The shares have dropped 44 percent this year compared with a 16 percent fall in the benchmark Kospi Index.

Jet Fuel

The price of jet fuel averaged $153.71 a barrel in Singapore in the second quarter, 87 percent higher than a year earlier, according to Bloomberg data. It closed at $153.05 a barrel yesterday after touching a record $181.85 on July 3.

Airlines globally may post a combined loss of $6.1 billion this year, the worst since 2003, on higher fuel costs, the International Air Transport Association has said. At least 25 airlines have gone out of business worldwide this year.

Asia-Pacific airlines, including Asiana, Korean Air Lines Co. and Qantas Airways Ltd., Australia's biggest carrier, have already announced trimming of routes and job cuts in response to higher fuel costs.

``Even if oil price drops, it won't help the shares much as the weakening economy may threaten demand for air travel,'' Meritz's Kim said.

South Korea's economy grew 4.8 percent in the second quarter from a year earlier, after a 5.8 percent gain in the first quarter, the government said on July 25. Soaring fuel costs and a weaker won drove the fastest inflation in almost 10 years, squeezing household spending.

Asiana's international passenger traffic, or the number of travelers multiplied by distance flown, rose 7.5 percent from a year earlier, while cargo traffic dropped 3.3 percent, according to the company's statement.

The airline filled 73 percent of seats during the second quarter, down 2.4 percentage points from a year earlier. It packed 81.9 percent of available cargo space, up 2.1 percentage points.

To contact the reporter on this story: Seonjin Cha in Seoul at scha2@bloomberg.net

Last Updated: July 31, 2008 02:40 EDT