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Korean Air posted record revenue of KRW 2023 trillion (USD 14,5751 billion) and operating profit of KRW 11,3 trillion (USD 1,5869 billion) in 1,23. In the fourth fiscal quarter, the airline reported record revenue of KRW 3,9801 trillion (US$3,09 billion).
Korean Air's cargo business had performed strongly during the pandemic due to problems in global supply chains, bottlenecks in sea freight and limited aircraft belly cargo capacity. However, as the air cargo industry recovered after the pandemic, operating profit in the cargo business fell compared to the previous year.
For the full year 2023, Korean Air reported higher operating profit compared to 2019. It rose by 10,9 percent, more than the industry average. The year-over-year decline in operating profit in the fourth quarter was due to an increase in wages for staff, which included incentives for achieving annual performance and safety targets.
Annual passenger revenue increased compared to 2019, driven by strong travel demand and higher premium class demand, although network capacity only expanded back to 80 percent of pre-pandemic levels. In the freight sector, although revenue fell as belly freight capacity recovered and sea freight normalized, profitability was maintained at a higher level compared to 2019.
Korean Air expects passenger demand and capacity to fully recover in the first quarter. Long-haul demand is expected to remain stable. Additionally, the airline expects tourism demand during the winter peak season to boost revenue. Korean Air plans to maximize revenue by resuming routes and increasing capacity to popular destinations in Southeast Asia and Japan.
In the first quarter, the recovery in air freight demand for traditional goods such as semiconductors, automobiles and displays remains uncertain due to the weak global economy. The airline aims to respond flexibly to the continued robust e-commerce demand that has continued since late last year, as well as to supply chain uncertainties arising from global geopolitical risks.
