Korean Air Posts 3Q Operating Profit of 618.6 Billion KRW, Up 19% YoY

All Passenger Routes Sailing Smoothly
Strong Cargo Demand Driven by Jung E-commerce

Korean Air posted an operating profit of 620 billion KRW in the third quarter of this year. Passenger demand increased on most routes, and cargo demand also boomed, resulting in approximately 20% growth compared to the same period last year.

On the 6th, Korean Air announced preliminary results for the third quarter of this year, with sales of 4.2409 trillion KRW and an operating profit of 618.6 billion KRW. These figures represent increases of 9.8% and 18.9%, respectively, compared to the same period last year. However, net profit was recorded at 276.6 billion KRW, down 34.8% during the same period.

Korean Air explained, "Efforts to timely increase supply during the summer peak passenger season and to attract as much e-commerce cargo demand as possible were effective," adding, "The decrease in net profit was due to a temporary decline in derivatives and net interest income caused by factors such as exchange rates, oil prices, and interest rates."

Passenger business sales amounted to 2.6173 trillion KRW, a 2.3% increase compared to the same period last year. The company explained that by appropriately supplying during demand-concentrated periods such as summer vacation and the Chuseok holiday, and actively attracting premium class passengers, profits increased across all routes.

Cargo business sales saw a steeper rise, reaching 1.1198 trillion KRW, a 22% increase compared to the third quarter of last year. Korean Air stated, "Despite it being the traditional low season for air cargo, continued growth in e-commerce from China drove demand."

Korean Air plans to increase supply mainly on Southeast Asian routes, where winter demand is concentrated, in the fourth quarter to secure performance. A Korean Air official said, "We plan to actively explore diversification of revenue sources to enhance profitability, such as expanding gift card usage locations, operating paid seats, and stabilizing in-flight Wi-Fi operations," adding, "For the cargo business, we will respond flexibly to expected market environment changes such as US-China political conflicts and instability in the shipping market, while aiming to maximize profits by capitalizing on year-end consumption booms."