Korean Air achieved a revenue of KRW 3.5354 trillion (USD 2.693 billion) in its second fiscal quarter, a 6% year-on-year increase following the strong recovery of travel demand. The airline posted a moderate operating profit of KRW 468 billion (USD 356.5 million) compared to last year, due to rising operation costs and airport fees.
The airline’s Q2 passenger business revenue rose by 154% year-on-year to KRW 2.221 trillion. This was the result of the airline increasing its passenger capacity by 20% from the previous quarter to meet strong travel demand.
Q2 2023 | Q2 2022 | Remarks | |
Revenue | 3,535.4 (2,693) | 3,332.4 (2,538.4) | +6% YoY |
Operating Profit | 468 (356.5) | 735.9 (560.6) | -36% YoY |
Net Income | 371.5 (283) | 450.4 (343.1) | -18% YoY |
Cargo business revenue decreased by 56% year-on-year in the second quarter to KRW 963.8 billion. The business has been affected by a decline in air freight demand due to increased passenger belly cargo capacity following the strong rebound of passenger operations as well as a drop in cargo rates.
Korean Air expects stronger results from its passenger business in Q3 2023, fueled by robust travel demand during summer and autumn Chuseok (Korean Thanksgiving) holiday peak seasons. The airline plans to maximise revenue by expanding operations to popular vacation destinations and flexibly increasing capacity on routes where high demand is expected.
In Q3 2023, the cargo business foresees intensified competition and a drop in freight rates due to weaker air cargo demand following the global economic slowdown and growing aircraft belly cargo capacity. The airline will proactively work to procure new freight demand and efficiently manage operations for increased revenue.
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