Korean Air sees Q4 operating profit decline

In Q4 2025, Korean Air recorded revenue of KRW 4.5516 trillion (USD 3.1721 billion), an increase of KRW 522 billion year-on-year. However, operating profit declined year-on-year to KRW 413.1 billion (USD 287.9 million) due to increased operating costs. Passenger business revenue totalled KRW 2.5917 trillion, up KRW 217.1 billion year-on-year. While demand on North American routes remained similar due to tighter entry regulations and intensifying competition on West Coast routes, the overall network achieved improved revenue and profitability. This growth was driven by a surge in short-haul demand, particularly for Japan and China, during the Chuseok holiday in October. Cargo business revenue rose by KRW 35.1 billion year-on-year to KRW 1.2331 trillion. Earnings remained stable, supported by steady e-commerce inflows, year-end seasonal volume, and reduced market volatility following the U.S.-China tariff negotiations. For Q1 2026, Korean Air plans to maximise passenger revenue by boosting sales in overseas markets to offset the weak Korean won and softening outbound demand from Korea. The airline will also flexibly expand capacity to capture peak demand periods, such as the Lunar New Year holiday in February. For the cargo business, amid uncertainties such as slowing in global economic growth, the airline plans to maximize profitability through portfolio diversification and flexible operation of freighter capacity in response to market conditions. In 2026, Korean Air anticipates a more competitive landscape driven by the recovery of global passenger capacity, alongside increased volatility in global policies. The airline is committed to responding agilely to these external variables, while ensuring the highest level of service as it prepares for the launch of the integrated airline. Singapore Airlines sees traffic rise in December In December 2025, the Singapore Airlines (SIA) Group’s passenger traffic rose 1.9% year-on-year, while passenger capacity grew 2.6%. The group’s passenger load factor (PLF) came in at 87.9%, with SIA and Scoot achieving monthly PLFs of 87.6% and 89.1% respectively. Combined passenger carriage rose 4.8% year-on-year to 3.8 million, on the back of the year-end peak travel demand, setting a new monthly record for the group. This brings the total passenger carriage for 2025 to 41.6 million, 6.6% higher than the previous record of 39.0 million in 2024. Cargo carriage rose 7.4% year-on-year, with increased freighter activity supported by traditional year-end demand. Cargo loads grew by 4.5%, outpacing the 1.6% expansion in cargo capacity. As a result, the cargo load factor was 1.6 percentage points higher at 55.2%. During the month, Scoot launched passenger services to Labuan Bajo and Semarang in Indonesia, and Okinawa in Japan. As of end-December 2025, the group’s passenger network2 covered 134 destinations in 37 countries and territories. SIA and Scoot each served 79 destinations. The cargo network comprised 138 destinations in 38 countries and territories. For Editorial Inquiries Contact: Editor Matt Driskill at [email protected] For Advertising Inquiries Contact: Head of Sales Sally Passey at [email protected]