Korean Air achieved a revenue of KRW 3.1959 trillion (US$2.4512 billion) in its first fiscal quarter, a 14 percent year-on-year increase following the steady recovery of travel demand and continued profitability of its cargo operations. However, the rise in fuel prices and increase in operation costs due to expanded aircraft operations has led the airline to record an operating profit of KRW 415 billion (US$318.3 million), a 47 percent decrease year-on-year.
The airline’s Q1 passenger business revenue rose by 394 percent year-on-year to KRW 1.7777 trillion. Backed by strong travel demand that has been fuelling the steady recovery in capacity and passenger numbers, the airline’s passenger business revenue has almost recovered to pre-COVID levels of Q1 2019, and is on its path to full normalisation.
The cargo business revenue fell by 51 percent year-on-year in the first quarter to KRW 1.485 trillion. The business has been affected by the global economic slowdown and the decrease in shipment rates following the increase in passenger aircraft belly cargo capacity.
Korean Air expects global passenger demand to rapidly recover in Q2, especially with the relaxation of travel restrictions around the world. The airline will continue to normalise its passenger business by increasing capacity and responding flexibly to demand.
In Q2 2023, the airline expects weaker air cargo demand due to the global economic slowdown and uncertainties in the air cargo market. Korean Air plans to closely monitor the market and secure new freight demand to expand its revenue scope. The airline also seeks to expand sales opportunities by flexibly utilising passenger aircraft belly cargo capacity on resuming routes.
Korean Air is a founding member of the SkyTeam airline alliance, and has grown into one of the largest transpacific airlines through its joint venture with Delta Air Lines.
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