Korean Air’s tentative financial results for Q2 2023 (Non-consolidated)
(Non-consolidated)
(Seoul, August 3, 2023)
- Korean Air achieved a revenue of KRW 3.5354 trillion (USD 2.693 billion) in its second fiscal quarter, a 6% year-on-year increase following the strong recovery of travel demand. The airline posted a moderate operating profit of KRW 468 billion (USD 356.5 million) compared to last year, due to rising operation costs and airport fees.
- The airline’s Q2 passenger business revenue rose by 154% year-on-year to KRW 2.221 trillion. This was the result of the airline increasing its passenger capacity by 20% from 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 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.
- In Q3 2023, the cargo business foresees intensified competition and a drop in freight rates due to weaker air cargo demand following the global economic slowdown and growing aircraft belly cargo capacity. The airline will proactively work to procure new freight demand and efficiently manage operations for increased revenue.
*Unit : KRW billion (USD million)
KRW/USD exchange rate: 1312.8
|
Q2 2023 |
Q2 2022 |
Remarks |
|
|
Revenue |
3,535.4 (2,693) |
3,332.4 (2,538.4) |
+6% YoY |
|
Operating Profit |
468 (356.5) |
735.9 (560.6) |
-36% YoY |
|
Net Income |
371.5 (283) |
450.4 (343.1) |
-18% YoY |
About Korean Air
Serving the world for more than 50 years, Korean Air is one of the world's top 20 airlines, carrying more than 27 million passengers in 2019, pre-COVID. With its global hub at Incheon International Airport (ICN), the airline serves 120 cities in 43 countries on five continents with a modern fleet of 157 aircraft and over 20,000 professional employees.
Korean Air's outstanding performance and commitment to the highest level of safety and customer service was further highlighted during the pandemic; the airline was granted numerous awards including 2021 Airline of the Year and 2022 Cargo Operator of the Year by Air Transport World, and a 5-star COVID safety rating from Skytrax.
Korean Air is a founding member of the SkyTeam airline alliance, and has grown into one of the largest transpacific airlines through its joint venture with Delta Air Lines.
Dedicated to providing Excellence in Flight, Korean Air’s vision is to be a respected leader in the world airline community.
For more information about Korean Air, please visit www.koreanair.com, Korean Air Newsroom,instagram.com/KoreanAirworld and Twitter@KoreanAir_KE.
