(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.
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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