Korean Air Reports 399 Billion Won Operating Profit in Q2, Down 3.5% Year-on-Year

Korean Air announced on July 11 that its provisional operating profit for the second quarter of this year was 399 billion won, a 3.5% decrease compared to the same period last year. Revenue was 3.9859 trillion won, showing a slight decrease of 0.9% year-on-year.

Regarding the decline in second-quarter operating profit, Korean Air explained, "Despite a decrease in fuel costs due to falling oil prices, operating profit declined because of increases in operating expenses such as labor costs and depreciation."

By business segment, second-quarter passenger business revenue was 2.3965 trillion won, a 2% decrease compared to the same period last year. The company responded proactively to route-specific demand decreases caused by seasonal off-peak periods, and profitability indicators remained similar to the same period last year due to concentrated demand during the early May holidays.

Second-quarter cargo business revenue was 1.0554 trillion won, a 4% decrease compared to the same period last year. Korean Air explained that, although demand volatility increased due to the announcement and postponement of reciprocal tariffs by the United States, the company responded to market changes by diversifying its revenue portfolio and attracting project-based demand for semiconductors, batteries, and solar cells, as well as seasonal fresh cargo.

Looking ahead to the third quarter, demand is expected to increase as the summer peak season begins, and strong performance is anticipated in the passenger business, especially on major tourist routes. Korean Air stated that it plans to maximize profits through flexible supply management, including expanding capacity on routes with concentrated demand.

For the cargo business, the company expects uncertainty regarding U.S. tariff policies to persist. Korean Air plans to maintain stable profits by strengthening its ability to respond to market conditions and operating routes flexibly in line with the results of tariff negotiations.