Korean Air said recently it achieved revenue of KRW 3.6684 trillion (US$2.5567 billion) and an operating profit of KRW 839.2 billion (US$584.9 million) in the third fiscal quarter. The airline recorded a cargo revenue of KRW 1.8564 trillion, a 12% year-on-year increase. The quarter saw a drop in cargo demand due to intensified competition following the increase in passenger plane belly cargo capacity. A decrease in consumer spending due to inflation and seasonal trends have also contributed to the reduced cargo demand.
The recovery in demand following relaxation of travel restrictions such as the removal of pre-arrival mandatory COVID testing has led the airline to bring in a passenger revenue of KRW 1.4543 trillion in the third quarter, an increase of 338% year on year.
While a weaker fourth quarter cargo business outlook is expected due to the global economic slowdown and diminished demand, the airline seeks to increase revenue by securing year-end seasonal demand. The fourth quarter passenger business outlook is bullish on strong passenger demand, and the airline will continue to operate flexibly through charter and extra flights.
“With a grim market outlook on inflation, weakened currency, and high interest rates, Korean Air will continue to address external challenges and minimise their impact,” the airline said.