Korean Air Reports 3 Trillion KRW in Q1 Revenue... "Passenger Demand Recovery"

Korean Air announced on the 3rd that its first-quarter sales reached 3.1959 trillion KRW, a 14% increase compared to the same period last year. However, operating profit decreased by 47% to 415 billion KRW, and net profit fell by 35% to 355.4 billion KRW.

The sales growth was influenced by the steady recovery in passenger demand and continuous profit generation in the cargo business. However, as aircraft operations expanded and business volume increased, fuel costs and operating expenses rose, leading to a decline in operating profit.

Specifically, first-quarter passenger sales recorded 1.7777 trillion KRW, a 394% increase compared to the same period last year. Revenue significantly improved as supply and transportation steadily recovered based on strong passenger demand. This revenue level was close to that of the first quarter of 2019, before the COVID-19 pandemic.

First-quarter cargo sales were 1.0485 trillion KRW, a 51% decrease compared to the same period last year. Revenue declined due to the continued global economic slowdown and a drop in freight rates caused by increased belly cargo supply on passenger aircraft.

Korean Air expects the global aviation market recovery to fully materialize in the second quarter for the passenger business. With most travel and operational restrictions, including country-specific quarantine regulations, lifted, passenger demand is anticipated to continue increasing. Korean Air will continue to make efforts to normalize the passenger business early through active supply expansion.

Regarding the cargo business in the second quarter, Korean Air forecasts ongoing uncertainty in the air cargo market due to concerns over a global economic downturn. The airline plans to closely monitor market supply and demand changes for timely responses and to continuously expand its profit base through proactive new demand development. Additionally, it intends to expand cargo sales opportunities by establishing preemptive sales strategies tailored to the destinations of returning passenger flights.

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