Korean Air profit falls 34% as fuel costs hit record revenue
Korean Air posted a record 5.0199 trillion won in quarterly revenue, but fuel costs nearly doubled and operating profit dropped 34.4% to 261.8 billion won.
Korean Air posted a record second-quarter revenue of 5.0199 trillion won, but operating profit fell 34.4% to 261.8 billion won as fuel costs climbed sharply and cut into the benefit of strong sales. The airline also swung to a net loss of 97.3 billion won, underscoring how quickly a carrier can lose margin even when traffic and cargo demand remain healthy.
The company said fuel costs jumped to 1.9991 trillion won from 947.8 billion won a year earlier, a rise driven by higher oil prices and a stronger won-dollar exchange rate. Passenger revenue reached 2.8479 trillion won, up 451.4 billion won from a year earlier, while cargo revenue rose to 1.5419 trillion won, up 486.5 billion won, helped by semiconductor shipments tied to global AI investment and strong K-beauty exports. Korean Air said freight rates reached their highest level since the COVID-19 pandemic and that it used flexible capacity management, including charter flights, to defend profitability.
The split between revenue and profit is a warning sign for the wider airline sector. Passengers are still flying, cargo demand is still moving, and pricing has held up well enough to set a second-quarter record, but fuel, currency swings, maintenance expenses and fare competition can erase gains before they reach the bottom line. For Korean Air, one of Asia’s largest carriers, the results also matter beyond Seoul because they offer a read on route economics across Korea, Hong Kong, Europe and other long-haul markets where fuel is a major cost item.
Even with the second-quarter hit, first-half revenue reached 9.535 trillion won, up 20% from a year earlier, and first-half operating profit rose 4% to 778.7 billion won. That points to a stronger first quarter, when Korean Air reported record revenue of 4.5151 trillion won and operating profit of 516.9 billion won and warned that rising Middle East tensions could push international jet fuel prices higher. The company had already moved to an emergency management system to control costs, a sign that management expected the pressure to intensify later in the year.
Korean Air said it expects passenger demand to rebound in the third quarter on the summer peak season and lower fuel surcharges, while it continues to target high-growth cargo tied to AI-related industries.
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