Korean Air announced it achieved a fourth fiscal quarter revenue of KRW 3.6068 trillion (US$2.846 billion), a 28 percent year-on-year increase, following the recovery in passenger demand and steady cargo profit. The airline recorded an operating profit of KRW 520.1 billion (US$410.4 million), a 26 percent decrease year-on-year.
The airline’s Q4 passenger revenue rose 339 percent year-on-year to KRW 1.6648 trillion, fuelled by growing air travel demand with Japan’s revised border measures and seasonal peak Southeast Asia and Oceanic demand. Passenger revenue exceeded cargo revenue, a sign of a full-fledged passenger demand recovery phase.
Cargo revenue fell 29 percent year-on-year to KRW 1.5483 trillion. The cargo business was affected by diminished demand due to global economic slowdown, decrease in shipment rates following the increase in passenger plane belly and bulk cargo capacity.
The airline expects passenger traffic demand to continue to increase gradually in Q1, and will focus on normalisation of its passenger business by monitoring and effectively responding to market trends.
With the global economic slowdown, the airline forecasts weaker air cargo demand. The airline seeks to secure demand by strengthening cooperation with large consignors and global forwarders, and respond to market volatility by enhancing service quality, including additional certification on special cargo.
To tackle uncertainties in post-pandemic 2023, Korean Air will be prepared to face business environment changes, and also strengthen its foundation for mid- to long-term growth for acquisition of Asiana Airlines.
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