Korean Air Posts Q2 Operating Profit of 735.9 Billion Won... "Passenger Recovery and Continued Cargo Strength"

[Asia Economy Reporter Yoo Hyun-seok] Despite persistent high oil prices and high exchange rates, Korean Air recorded strong performance thanks to the gradual recovery of passenger demand and the solid performance of its cargo business.

Korean Air announced on the 4th that its operating profit for the second quarter increased by 273.7% year-on-year to 735.87 billion KRW. During the same period, sales rose 70.8% to 3.332387 trillion KRW, and net profit increased by 246.6% to 450.414 billion KRW.

Passenger route revenue reached 874.2 billion KRW, up 307% compared to the same period last year, supported by the easing of the COVID-19 spread and the recovery of travel demand amid major countries' border reopening policies.

Cargo revenue was 2.1712 trillion KRW, a 44% increase year-on-year. Despite ongoing global logistics supply chain disruptions caused by the prolonged Ukraine crisis and lockdown measures in key regions of China, strong demand in automotive, semiconductor, electronic equipment, and parts sectors, as well as active acquisition of COVID-related project items (such as diagnostic kits), led to the strong performance.

Korean Air expects the passenger business in the second half of the year to see slower demand recovery than initially anticipated due to external factors such as concerns over a resurgence of COVID-19 and oil price volatility. The company plans to flexibly respond to market demand by gradually increasing supply to 50% of pre-COVID-19 levels by September.

For the cargo business in the second half, supply is expected to increase due to the expansion of belly cargo from global passenger flight reopenings. Reflecting this trend, Korean Air plans to focus on optimizing aircraft operations and maximizing profits through the use of scheduled passenger flights and route management tailored to regional market demand and supply fluctuations.

A Korean Air official explained, "Despite the contraction of the real economy due to intensified global inflation, we plan to continue efforts to normalize the passenger business and enhance cargo profitability based on a safe flight policy."