Korea Ratings Upgrades Korean Air's Credit Rating Outlook to 'A/Stable'

Korea Ratings announced on May 15, 2025, that it has upgraded Korean Air's unsecured bond credit rating from 'A-/Positive' to 'A/Stable'.

In a report released on the same day, Korea Ratings cited the primary reason for the rating upgrade as the expansion of business scale and strengthening of market position resulting from the acquisition of Asiana Airlines.

The agency also projected that Korean Air will demonstrate stable profit generation based on strong performance in long-haul passenger transport and synergy effects from the integration. Furthermore, it evaluated that, despite increased aircraft investment and the impact of consolidating Asiana Airlines, the company is maintaining a sound financial structure through enhanced operating cash flow.

Korea Ratings stated that it plans to monitor the improvement in mid-term profit generation, which may result from strengthened market position, increased customer attraction based on an extensive network, cost reduction through economies of scale, and improved fleet operational efficiency. The agency added that it will also assess whether Korean Air maintains solid financial stability while responding to large-scale investment needs, based on enhanced operating cash flow and the reduction of financial costs at its subsidiary, Asiana Airlines.