Driven by overseas-origin passenger traffic and demand for AI (artificial intelligence) and semiconductor cargo, Korean Air recorded its highest quarterly revenue on record in the third quarter. However, profits did not grow in line with the revenue increase due to the burden of fuel costs resulting from high oil prices.
Korean Air announced on the 15th that its standalone Q3 revenue reached 5.0448 trillion won, a 26% year-on-year increase.
This marked the second consecutive quarter exceeding 5 trillion won, following Q2 (5.0199 trillion won). Operating profit rose by 12% to 421.2 billion won. The operating margin fell to 8.3%, down from 9.4% in the same period last year. On a cumulative basis for the first three quarters, while revenue increased by 22%, operating profit (1.1999 trillion won) grew by only 7%. Net income for the current period surged to 929.7 billion won, roughly 10 times the level of the same period last year (91.9 billion won). This reflected factors such as the effect of a decline in the won/dollar exchange rate at the end of Q3.
Passenger business revenue increased by 20.5% year-on-year to 2.9174 trillion won. While demand originating from Korea decreased slightly due to fuel surcharge burdens and a weak won, demand for flights entering Korea from overseas and transit demand at Incheon Airport grew significantly. Expanding supply on North America and Japan routes during the summer peak season also boosted revenue.
Cargo business revenue increased by 34.3% to 1.4323 trillion won. Demand for high-value-added cargo related to AI and semiconductors remained steady, and profits were enhanced by adjusting supply in line with regional demand shifts.
Korean Air forecast that the burden of fuel costs would continue into Q4 due to the prolonged Middle East war. The company plans to enhance profitability in the passenger business centered on overseas-origin flights to Korea and transit demand, while flexibly managing supply in the cargo business to match demand for key items such as AI and semiconductors during the Q4 air cargo peak season.
Korean Air is preparing for the launch of "Integrated Korean Air" on December 17. A company official stated, "All employees will re-examine the 'Absolute Safety' system and improve service quality to leap forward as a global network carrier."
in INDUSTRY
