Korean Air Surpasses 5 Trillion Won in Q2 Revenue... Operating Profit Down 34% Due to Rising Oil Prices

Despite Higher Oil Prices and Exchange Rates

Record-High Quarterly Revenue Driven by Growth in Semiconductor and Cosmetics Cargo

Korean Air posted record-high second-quarter revenue despite a challenging business environment. However, operating profit declined due to a rise in international oil prices and the strengthening of the won-dollar exchange rate.

On July 13, Korean Air announced that its standalone revenue for the second quarter of this year reached 5.0199 trillion won, a 25.9% increase compared to the same period last year. This marks the highest second-quarter revenue in the company’s history.

Boeing 777-300ER aircraft. Korean Air

Operating profit for the second quarter was 261.8 billion won, down 34.4% from the same period last year. The company attributed this decline to increased fuel costs resulting from higher oil prices.

However, on a half-year basis, operating profit reached 778.7 billion won, up 28.8 billion won compared to the same period last year, maintaining a positive trend.

Passenger business revenue for the second quarter stood at 2.8479 trillion won, an increase of 451.4 billion won year-on-year. While outbound passenger demand from Korea was somewhat dampened due to fuel surcharge burdens amid rising oil prices, the company benefited from spillover demand resulting from a reduction in supply by Middle Eastern airlines and an increase in foreign visitors to Korea, which supported overall performance.

Cargo business revenue was 1.5419 trillion won, up 486.5 billion won year-on-year.

Korean Air explained, “Air cargo demand increased due to expanded global AI-related investments and strong K-beauty exports. We achieved robust profitability through active acquisition of high-value cargo and flexible route operations, including the operation of charter flights.”

Korean Air expects passenger demand to rebound in the third quarter, driven by a recovery in travel sentiment due to lower fuel surcharges and the impact of the summer peak season. In particular, with ongoing inbound demand from overseas and recovering outbound demand from Korea, the company forecasts a significant improvement in profitability thanks to two-way demand growth.

This content was produced with the assistance of AI translation services.