Korean Air pulls in record Q2 revenue but operating profit declines

Korean Air achieved a record-high second-quarter revenue of KRW 5.0199 trillion (USD 3.2565 billion), an increase of KRW 1.034 trillion year-on-year. Operating profit, however, declined by KRW 137.1 billion year-on-year to KRW 261.8 billion (USD 169.8 million), impacted by higher fuel costs. Despite the quarterly decrease, cumulative first-half operating profit rose by KRW 28.8 billion year-on-year to KRW 778.7 billion (USD 505.2 million), sustaining its steady growth momentum. Passenger revenue increased by KRW 451.4 billion year-on-year to KRW 2.8479 trillion. While outbound passenger demand from Korea slightly softened due to oil price hikes, inbound tourism grew and transit demand rose due to geopolitical developments in the Middle East. The airline maximized revenue by expanding capacity across key routes. Q2 cargo revenue totalled KRW 1.5419 trillion, a year-on-year increase of KRW 486.5 billion. The surge in air cargo demand was primarily driven by global AI investments and strong K-beauty exports. The airline achieved profitability through flexible route operations, including deployment of non-scheduled charter flights and securing high-yield cargo. In Q3, passenger demand is expected to rebound, driven by peak summer travel season and recovering travel sentiment supported by lower fuel surcharges. This momentum is expected to build robust demand, supported by steady inbound arrivals and a recovery in outbound travel from Korea. The cargo business aims to secure a stable revenue stream by actively targeting high-growth cargo sectors, particularly AI-related industries. Korean Air will also flexibly manage capacity to respond to changing market conditions and maximise revenue. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]