Korean Air recently announced it earned revenue of KRW 3.3324 trillion (US$2.5775 billion) and an operating profit of KRW 735.9 billion (US$569.2 million) in the second fiscal quarter. Despite continued high oil prices and volatile exchange rates over the course of the second quarter, the airline’s gradual recovery in passenger demand and robust cargo demand led to improved results year-on-year.
Growing travel demand due to dropping COVID cases and borders reopening led the airline to post KRW 874.2 billion in passenger revenue in the second quarter, a 307 percent year-on-year increase.
Korean Air recorded a cargo revenue of KRW 2.1712 trillion, a 44 percent increase year-on-year. While the prolonged war in Ukraine and the lockdowns in China continued to disrupt the global logistics supply chain into Q2, the airline managed to maximise profit by actively transporting high-demand emergency relief supplies, automobile parts, semiconductors and electronics.
The airline expects passenger traffic to recover slower than originally forecasted in the second half of the year, as external factors such as the pandemic and oil prices linger. The airline seeks to gradually increase its passenger network capacity to 50% of pre-pandemic levels by September, and will continue to respond flexibly to demand.
With the resumption of passenger services following border reopenings, the airline expects to procure additional air cargo capacity through passenger fleet belly cargo space. The airline looks to maximise profit by utilising scheduled passenger services; operating routes based on regional demand and capacity fluctuations; and through fleet optimisation.