Key facts
- Korean Air's second-quarter operating profit decreased by 34% to 261.8 billion won.
- The airline achieved a record second-quarter revenue of 5.02 trillion won, a 26% increase year-on-year.
- Passenger revenue grew by 19% to 2.85 trillion won.
- Cargo revenue saw a significant surge of 46% to 1.54 trillion won.
- Higher fuel costs were cited as a primary reason for the profit decline.
Korean Air Lines reported a 34% decrease in its second-quarter operating profit, falling to 261.8 billion won ($174.52 million) from 398.9 billion won in the same period last year. This decline occurred despite the airline achieving a record revenue of 5.02 trillion won for the quarter, marking a 26% year-on-year increase.
Passenger revenue contributed significantly, rising approximately 19% to 2.85 trillion won, boosted by stronger inbound tourism and increased transit demand. Geopolitical disruptions in the Middle East also played a role in offsetting a slowdown in outbound travel from South Korea due to higher oil prices.
Cargo revenue experienced a substantial surge of about 46% year-on-year, reaching 1.54 trillion won. This growth was attributed to robust demand linked to global artificial intelligence investments and strong exports of South Korean beauty products.
Looking ahead, Korean Air anticipates a rebound in passenger demand for the third quarter, driven by peak summer travel and anticipated lower fuel surcharges. The company also aims to maintain revenue momentum by focusing on high-growth cargo segments, particularly those related to AI industries.