Korean Air 1Q Operating Profit Down 19% YoY... "Increased Investment Including New Aircraft Introduction"

Passenger Demand Expected to Rise in Second Quarter Due to May Holidays

Korean Air announced on the 11th that its operating profit for the first quarter of this year was 350.9 billion KRW, a decrease of about 19% compared to the previous year. This was due to increased operating expenses caused by upfront investments for new aircraft introduction and service premiumization, as well as rising exchange rates.

During the same period, sales increased by about 3% to 3.9559 trillion KRW, while net profit for the period decreased by 44% to 193.2 billion KRW.

Sales slightly increased due to active demand attraction efforts in both passenger and cargo sectors. Among them, passenger business sales recorded 2.4355 trillion KRW, up 4% compared to the same period last year. This was influenced by the continued effects of the Lunar New Year and holiday seasons at the beginning of the year, as well as steady travel demand, which led to increased sales and transportation.

Provided by Korean Air

Cargo business sales in the first quarter increased by 6% year-on-year to 1.054 trillion KRW. Despite the impact of the U.S. government's tariff policies, steady demand continued in sectors such as e-commerce, electronics, automotive parts shipments, and fresh cargo exported from Korea.

Korean Air expects demand to increase in the passenger business in the second quarter, particularly around early May holidays. They anticipate performance growth as demand rises on routes from Korea to Southeast Asia, China, and Japan.

To this end, they plan to maximize profits by discovering new destinations and operating irregular flights. Regarding the cargo business, they added that they will closely analyze and monitor fluctuations in air cargo due to U.S. tariff imposition policies and respond promptly.