Korean Air 3Q Operating Profit 520.3 Billion KRW... 38% Decrease YoY

Sales of 3.8638 Trillion KRW and Net Profit of 424.5 Billion KRW

Korean Air announced on the 14th that it recorded sales of 3.8638 trillion KRW and an operating profit of 520.3 billion KRW for the third quarter of this year. Compared to the same period last year (3.6684 trillion KRW and 839.2 billion KRW), these figures represent a 5% increase in sales and a 38% decrease in operating profit, respectively. Net profit for the period was 424.5 billion KRW, down 2% from 431.4 billion KRW in the same period last year.

Sales increased compared to the previous year, supported by strong passenger demand during the peak travel season. However, the company analyzed that operating profit declined due to increased ancillary costs such as fuel and labor expenses resulting from the increased supply of passenger aircraft.

By business segment, passenger business sales reached 2.5584 trillion KRW, a 76% increase compared to the same period last year. Korean Air attributed this to strong passenger demand during peak seasons such as the first summer vacation period after the COVID-19 endemic and the Chuseok holiday, leading to increased transportation and revenue across all routes. Cargo business sales were 915.3 billion KRW, down 51% from the same period last year due to the off-season for air cargo. However, compared to the third quarter of 2019 before COVID-19, this is a 43% increase in sales.

Korean Air B787-9 [Photo by Korean Air]

The company expects passenger demand to continue increasing in the fourth quarter and plans to continuously expand supply aiming to reach pre-COVID-19 levels. It will also pursue maximizing profits through developing new demand and operating irregular flights. Regarding the cargo business, the company foresees increased economic uncertainty due to the prolonged monetary tightening policy of the U.S. Federal Reserve (Fed). Nevertheless, it expects air cargo demand to gradually increase due to year-end seasonal demand. Korean Air plans to maximize profits by focusing on attracting e-commerce demand and targeting seasonal project demand.

Korean Air stated, “As a result of continuous efforts to improve financial stability through strong operating performance, accumulation of cash assets, and reduction of debt ratio, we have returned to an A credit rating for the first time in eight years,” adding, “We plan to continue efforts to maintain a stable financial condition even after the acquisition of Asiana Airlines.”

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