Korean Air Reports Q2 2023 Results

Dark/Light Mode (04/08/23)  Korean Air has reported a revenue of KRW 3.5354 trillion (USD 2.693 billion) for its second fiscal quarter, a 6% year-on-year increase.

Impacted by rising operating costs and airport fees, Korean posted a moderate operating profit of KRW 468 billion (USD 356.5 million) compared to last year.

The airline’s Q2 passenger business revenue rose by 154% year-on-year to KRW 2.221 trillion, as passenger capacity increased by 20% on the previous quarter to meet strong travel demand.

Korean Air Boeing 777 reg: HL8008. Picture by Steven Howard of TravelNewsAsia.com

Cargo business revenue decreased by 56% year-on-year in the second quarter to KRW 963.8 billion. The business has been affected by a decline in air freight demand due to increased passenger belly cargo capacity following the strong rebound of passenger operations as well as a drop in cargo rates.

Korean Air has indicated that it expects stronger results from its passenger business in Q3 2023, fueled by robust travel demand during summer and autumn Chuseok (Korean Thanksgiving) holiday peak seasons.

The airline plans to maximize revenue by expanding operations to popular vacation destinations and flexibly increasing capacity on routes where high demand is expected.

For the cargo business, Korean foresees intensified competition in Q3 2023 with a further drop in freight rates expected due to weaker air cargo demand following the global economic slowdown and growing aircraft belly cargo capacity.

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