Korean Air recorded nearly a 20 percent drop in operating profit in the first quarter of the year, due to increased costs related to new aircraft and a weakening Korean won.
According to preliminary figures released by the national flag carrier on Sunday, revenue for the January–March period reached 3.95 trillion won ($2.77 billion) on a nonconsolidated basis, up 3 percent from the previous year.
Despite the record revenue, Korean Air’s operating profit dropped to 350.9 billion won, down from 436.1 billion won a year earlier. Net profit fell even more sharply, plunging 44 percent to 193.2 billion won.
Korean Air cited rising operating expenses as a key factor behind the profit dip, particularly costs tied to new aircraft introduced after pandemic-era delays. Rising unit costs from a weaker won also contributed to the decline, the company explained.
“The new aircraft is part of a mid-to-long-term investment strategy aimed at expanding capacity, enhancing service quality and improving profitability through a broader network and upgraded services,” the company said in a statement.
The airline has added 16 planes to its fleet since the second quarter of last year.
According to the company, revenue from the air travel sector rose 4 percent on-year to 2.43 trillion won, thanks to holiday rush periods, while cargo revenue climbed 6 percent to 1.05 trillion won, supported by solid demand for shipments of electronics, auto parts and fresh goods.
The airline expects stronger second-quarter results as travel demand rises during the May holidays, with new routes and chartered operations expanding to high-demand destinations such as Southeast Asia, China and Japan.
It also noted it will closely monitor cargo demand, which may face volatility due to new US tariff measures.
minmin@heraldcorp.com
