Korean Air posts record quarterly revenue as fuel costs weigh on margins

Korean Air reported record third-quarter revenue of 5.0448 trillion won on October 15, as passenger and cargo businesses both expanded despite higher fuel costs. Its preliminary standalone results showed operating profit of 421.2 billion won, up 11.9% from a year earlier, according to Yonhap. Net profit reached 929.7 billion won, compared with 91.9 billion won a year earlier. [ 3 , 4 , 5 ]

Revenue growth was reported as approximately 26% year on year. Passenger revenue rose to 2.9174 trillion won, an increase of 496.3 billion won. The airline said higher fuel surcharges and a weaker won dampened demand originating in Korea, but increased inbound travel and transfers through Incheon Airport supported sales. It expanded capacity on routes to the Americas and Japan for the summer peak season. [ 2 , 3 , 4 , 5 ]

Cargo revenue reached 1.4323 trillion won, up 365.6 billion won from a year earlier. Korean Air attributed the increase to steady demand for high-value cargo related to artificial intelligence and semiconductors, together with adjustments to capacity in response to regional demand. Yonhap reported cargo revenue growth of 34.3%. [ 3 , 4 , 5 ]

Higher costs limited the improvement in profitability. Chosun Ilbo reported that fuel expenses rose 67% to 1.6962 trillion won and that operating profit was 13.4% below the market consensus. The operating margin fell to 8.3% from 9.4%. Exchange-rate effects helped net income: the outlet reported foreign-currency translation gains of 1.0702 trillion won. [ 6 ]

Korean Air expects fuel costs to remain a burden in the fourth quarter because of the prolonged Middle East war, according to the reports. It plans to focus on inbound and transfer passengers and adjust cargo capacity to AI, semiconductor and year-end demand. The airline is preparing for the December 17 launch of an integrated operation with Asiana Airlines, Chosun Ilbo and Bloter reported. [ 3 , 4 , 5 , 6 , 8 ]