Korean Air reported impressive record revenue for its second quarter, propelled by robust demand in both passenger travel and cargo operations. Despite this strong top-line performance, the national flag carrier noted a decrease in operating profit due to significantly higher fuel costs, according to an announcement on Monday.
Based on preliminary earnings data, Korean Air’s second-quarter revenue surged by 26 percent year-over-year, reaching 5.02 trillion won ($3.4 billion). This achievement marks the company’s strongest April-to-June financial performance in its history.
However, operating profit for the period saw a 34 percent decline, settling at 261.8 billion won. This downturn was primarily attributed to escalating jet fuel prices, exacerbated by the ongoing conflict in the Middle East. Furthermore, the company reported that net income swung to a loss during the quarter.
For the entire first half of the year, total revenue for Korean Air grew by 20 percent, reaching 9.54 trillion won. Operating profit for the first six months edged up 4 percent to 778.7 billion won, indicating that stronger earnings in the earlier part of the year successfully mitigated the slowdown experienced in the second quarter.
Both the passenger and cargo divisions demonstrated robust growth during the second quarter, contributing significantly to the overall revenue performance.
Passenger revenue saw a substantial increase of 451.4 billion won, reaching 2.85 trillion won, driven by a surge in inbound tourism and transit traffic. Concurrently, cargo revenue rose by 486.5 billion won to 1.54 trillion won. This strong cargo performance was fueled by high demand for semiconductor shipments and booming K-beauty exports, supported by Korean Air’s flexible route operations and strategic focus on high-yield cargo.
In an official statement, Korean Air expressed optimism for the future: “We anticipate a strong rebound in passenger demand during the third quarter, supported by reduced fuel surcharges, peak summer travel, and an increase in both inbound and outbound travel demand.” Regarding its cargo segment, the airline affirmed, “We will continue to target high-growth sectors, particularly those related to AI industries, while maintaining flexible capacity management to maximize both revenue and overall profitability.”
