Korean Air Posts 839.2 Billion KRW Operating Profit in Q3, Up 91% YoY

[Asia Economy Reporter Hyunseok Yoo] Korean Air announced on the 3rd that its operating profit for the third quarter increased by 91% year-on-year to 839.2 billion KRW. During the same period, sales and net profit reached 3.6684 trillion KRW and 431.4 billion KRW, respectively, marking increases of 65% and 222%.

Specifically, cargo sales recorded 1.8564 trillion KRW. The company explained that competition intensified due to increased belly cargo supply following the global expansion of passenger reopening. Additionally, air cargo demand weakened due to consumption slowdown caused by inflation and seasonal factors. Nevertheless, through flexible supply, cargo sales increased by 12% compared to the same period last year.

Passenger sales increased significantly. Due to the recovery trend in demand following the easing of entry and exit regulations such as the abolition of mandatory pre-entry COVID-19 testing, passenger sales rose 338% year-on-year to 1.4543 trillion KRW.

Korean Air expects demand in the cargo business to shrink in the fourth quarter due to the global economic slowdown. To overcome this, the company plans to increase revenue by attracting year-end and seasonal demand. For the passenger business, continuous growth in passenger demand is anticipated. Korean Air plans to respond by operating flexible routes, including the use of charter flights. Along with this, the company intends to respond promptly to adverse external conditions such as rising oil prices, exchange rates, and interest rates in the future.

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