Korean Air Posts Record 2Q Revenue... Operating Profit Declines Due to Fuel and Labor Costs

2Q Sales 4.02 Trillion KRW... Largest Quarterly Record
Operating Profit 413.4 Billion KRW... 12% Decrease YoY
Impact of Increased Fuel and Labor Costs

Korean Air recorded sales exceeding 4 trillion won in the second quarter of this year, achieving the highest quarterly record. However, operating profit decreased by more than 10% compared to the same period last year due to increased fuel and labor costs.

On the 7th, Korean Air announced preliminary results showing separate sales of 4.0237 trillion won and operating profit of 413.4 billion won for the second quarter of this year. Sales increased by 13.8% compared to the same period last year, setting a record for the highest quarterly sales ever. On the other hand, operating profit decreased by 11.7%. Net profit for the period also declined by 6.0% during the same period, totaling 349 billion won.

Korean Air explained, "This is the result of proactively responding to seasonal changes in passenger demand by route and actively attracting air cargo demand. However, operating profit decreased compared to the previous year due to rising fuel prices and increased labor and fuel costs associated with business expansion."

Specifically, passenger business sales in the second quarter amounted to 2.4446 trillion won, a 10% increase compared to the same period last year. This was due to an increase in overall route supply, including China, compared to the previous year. Strong demand from business and leisure travelers on routes to the Americas and Europe also contributed.

Cargo business sales recorded 1.0972 trillion won, a 14% increase compared to the same period last year, driven by attracting e-commerce shipments from China. It was explained that stable demand is being maintained as the semiconductor, automobile, and display industries improve.

Positive results are expected in the third quarter as well. A Korean Air official stated, "In the third quarter, passenger business plans to maximize profits through increased flights and expanded irregular operations during the peak summer season demand period. The cargo business plans to actively attract e-commerce demand through charter flights and expand competitiveness with flexible route scheduling."