SEOUL - SOUTH Korea's main flag carrier Korean Air announced on Tuesday it swung to a profit in the third quarter thanks to a stronger won and lower fuel prices.

The firm said in a statement it posted a net profit of 264 billion won (S$316 billion) in July-September compared to a net loss of 684.1 billion a year earlier.

'A strong won helped cut non-operating costs and stabilising oil prices reduced spending on jet fuel,' company spokeswoman Lee Ji-Hye told Dow Jones Newswires.

Non-operating expenses fell 74 percent to 301.4 billion in the third quarter from 1.156 trillion a year earlier, while fuel costs fell 40 percent to 762.2 billion won from 1.264 trillion.

The company achieved an operating profit of 100.1 billion won compared to an operating loss of 25.1 billion a year earlier. Sales fell 10 percent to 2.477 trillion won from 2.76 trillion.

The airline forecast that earnings would continue to improve through the fourth quarter since the demand for outbound travel and freight shipments was rising, although the impact of swine flu on travel remained uncertain. -- AFP