Korean Air Reports Q3 Operating Profit of 376.3 Billion Won, Down 39% Year-on-Year

Revenue Falls 6% to 4.0085 Trillion Won

Korean Air announced on October 21 that its operating profit for the third quarter of this year was provisionally tallied at 376.3 billion won, down 39.2% compared to the same period last year. Revenue stood at 4.0085 trillion won, a 6% decrease year-on-year.

Regarding the sluggish performance, Korean Air explained, "Revenue declined due to increased global supply and intensified price competition," adding, "Overall operating costs rose due to higher depreciation expenses, maintenance costs, and airport and passenger-related expenses."

By segment, third-quarter passenger business revenue dropped by 196.2 billion won year-on-year to 2.4211 trillion won. Although the third quarter is usually the peak season for passenger travel, factors such as stricter entry regulations for the United States and the Chuseok holiday being pushed back to October led to a decrease in revenue.

Third-quarter cargo business revenue was recorded at 1.0667 trillion won, down 53.1 billion won from the same period last year. While the growth of the air cargo market slowed somewhat due to the expansion of U.S. tariff risks, stable profits were maintained through flexible route operations in response to changes in bilateral tariffs and fluctuating demand by country.

For the fourth quarter of this year, Korean Air expects improved performance across all routes in the passenger business, driven by the long Chuseok holiday in October and the year-end peak season. The company also plans to enhance profitability through flexible supply management focused on popular winter tourist destinations. As for the cargo business in the fourth quarter, expectations remain for a seasonal boost in year-end consumption, but there are also concerns about shrinking demand due to ongoing trade conflicts.

A Korean Air representative stated, "We plan to improve profitability through flexible supply management that reflects changes in market conditions, maximizing e-commerce demand, and expanding the acquisition of high value-added cargo."

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