Korean Air Achieves Record Quarterly and Annual Operating Profit on Strong Cargo Business

[Asia Economy Reporter Yoo Hyun-seok] Korean Air recorded the highest-ever operating profit on a quarterly and annual basis due to the strong performance of its cargo business.

Korean Air announced on the 27th that its sales in the fourth quarter of last year reached 2.8259 trillion KRW, and operating profit was 704.4 billion KRW. This represents an increase of 52% and 381%, respectively, compared to the same period last year. The operating profit is the highest ever on a quarterly basis. The previous highest operating profit was 447.6 billion KRW recorded in the third quarter of 2016.

By business segment, the cargo business recorded 2.1807 trillion KRW in the fourth quarter of last year, marking the highest quarterly sales ever. Previously, the highest was 1.6503 trillion KRW recorded in the third quarter of last year. A company official said, "Due to the year-end peak season effect, demand increased and belly cargo supply decreased due to reduced passenger flights, leading to a rise in freight rates. We proactively responded to global supply chain disruptions and operational restrictions caused by the Omicron variant to maintain stable supply."

The passenger business continued to struggle due to COVID-19 but slightly improved thanks to the expansion of quarantine-free entry regions such as Guam, Singapore, and Hawaii. Sales reached 379.5 billion KRW, a 14% increase compared to the previous quarter.

Korean Air plans to prepare for variables in both cargo and passenger businesses this year. The cargo business will respond comprehensively to global supply chain issues caused by the spread of the Omicron variant, as well as increases in global consumption and investment. In particular, the company plans to maintain stable supply by strengthening flight and operational capabilities and flexibly respond to market changes based on the operation of irregular and cargo-only passenger flights.

A company official explained, "The speed of demand recovery is expected to be determined by the spread and containment of COVID-19 variants and domestic and international entry and exit regulations. We plan to continue flexible route operations that correspond to market changes."

Last year, Korean Air's sales and operating profit were 8.7534 trillion KRW and 1.4644 trillion KRW, respectively. The operating profit is the highest ever on an annual basis. The previous record was 1.1589 trillion KRW recorded in 2010.

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