Korean Air Q3 Revenue Tops 5 Trillion Won, Setting Quarterly Record

Revenue: 5.0448 Trillion Won; Operating Profit: 421.2 Billion Won
Up 26% and 12%, Respectively, Year Over Year
Net Profit Rises to 929.7 Billion Won on Exchange-Rate Effects

Korean Air posted record quarterly revenue in the third quarter of this year, driven by growth in its passenger and cargo businesses. Operating profit also rose year over year, while net profit increased sharply, partly due to foreign-exchange-related effects, including a decline in the won-dollar exchange rate.

Korean Air said on October 15 that its third-quarter revenue, based on separate financial statements, was provisionally tallied at 5.0448 trillion won. This was up 26% from the same period last year. Operating profit rose 12% to 421.2 billion won. Net profit surged 912%, from 91.9 billion won in the same period last year to 929.7 billion won.

Korean Air B777-300ER. Korean Air

Cumulative revenue for the first three quarters of this year was 14.5798 trillion won, up 22% year over year. Cumulative operating profit increased 7% to 1.1999 trillion won, while net profit rose 58% to 1.0751 trillion won.

Both the passenger and cargo businesses showed growth. Third-quarter passenger revenue was 2.9174 trillion won, up 496.3 billion won from the same period last year. Although demand for passenger travel from Korea weakened somewhat amid the burden of fuel surcharges and a weaker won, higher demand for travel to Korea from overseas and for transfers at Incheon International Airport drove revenue growth.

Korean Air expanded capacity, focusing on routes to North America and Japan, to meet demand during the summer peak season.

Cargo revenue was 1.4323 trillion won, up 365.6 billion won from the same period last year. The company said it improved profitability by adjusting capacity to market conditions in each region, while demand for high-value-added cargo related to artificial intelligence (AI) and semiconductors remained steady.

However, cost pressures from high oil prices are expected to continue. Korean Air forecast that the prolonged war in the Middle East would keep fuel costs elevated in the fourth quarter. The company plans to grow its passenger business by focusing on demand for travel to Korea from overseas and transfers at Incheon, while flexibly managing cargo capacity in line with demand related to AI and semiconductors and the traditional peak season for air freight.

Ahead of the launch of the integrated Korean Air on December 17, the company plans to review its safety systems and improve service quality as it seeks to become a global network airline.

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