Korean Air Posts Q3 Operating Profit of 438.6 Billion KRW... Record High Cargo Sales

Sales of 2.227 Trillion KRW, Operating Profit of 438.6 Billion KRW
Achieving Profit for 6 Consecutive Quarters

[Asia Economy Reporter Dongwoo Lee] Korean Air achieved strong performance in the third quarter of this year, supported by robust air cargo freight rates.

Korean Air announced on the 12th that it posted sales of 2.227 trillion KRW and an operating profit of 438.6 billion KRW in the third quarter. These figures represent increases of 44% and 5671%, respectively. Net profit for the same period turned positive at 134 billion KRW. This is the first time in five years that Korean Air has recorded a quarterly operating profit in the 400 billion KRW range.

The third-quarter performance was also driven by air cargo. Korean Air's cargo business sales reached 1.6503 trillion KRW, marking the highest quarterly sales ever. The company stated, "This is the result of increased demand for air cargo due to global supply chain disruptions, reduced passenger flights leading to a shortage of belly cargo capacity, and consequently increased volume and freight rates."

The passenger business in the third quarter was sluggish due to the impact of COVID-19. However, sales rose about 55% compared to the second quarter to 331.9 billion KRW, supported by increased international demand mainly on long-haul routes such as those to the Americas, and expanded domestic demand during the summer vacation season.

Korean Air expects strong performance in the cargo business to continue in the fourth quarter, driven by the year-end cargo peak season and the imbalance between supply and demand. Accordingly, the company plans to expand supply by maximizing the utilization of cargo-only passenger aircraft to improve fleet operation rates. It also explained that it will maintain stable cargo operations by securing alternative airports and selecting additional ground handling companies.

Regarding the passenger business in the fourth quarter, demand is expected to remain weak due to COVID-19. However, with the transition to "With Corona" and the reopening of borders worldwide, there is a growing possibility of increased passenger demand. Therefore, Korean Air plans to gradually expand supply by flexibly operating scheduled and charter flights mainly to quarantine-exempt regions such as Hawaii, Guam, Chiang Mai in Thailand, and Spain.

This content was produced with the assistance of AI translation services.