Korean Air posts record Q1 earnings, braces for oil headwinds

Korean Air said Monday it posted record quarterly revenue of 4.52 trillion won ($3.04 billion) for the first quarter, up 14 percent from a year earlier.

Operating profit rose 47 percent on-year to 516.9 billion won, while net profit increased 26 percent to 242.7 billion won.

Passenger revenue climbed 7.3 percent to 2.61 trillion won, supported by solid demand during the Lunar New Year holiday in February and stronger sales on European and key transit routes.

Cargo revenue also rose 3.5 percent to 1.09 trillion won, driven by an expansion of long-term contracts and flexible operations, including additional charter and irregular flights on high-demand US routes.

Looking ahead, Korean Air expects external uncertainties to weigh on second-quarter performance, citing high oil prices and a weak Korean won amid Middle East instability.

To offset sluggish outbound demand from Korea, the airline plans to focus on attracting overseas-origin and transit passengers to support profitability.

In cargo, the company aims to secure seasonal shipments while capturing demand from growth sectors such as artificial intelligence and cosmetics, alongside continued flexible route operations.

Korean Air said it has entered an emergency management mode starting in April to respond to rising fuel costs, adding that it will implement companywide cost-efficiency measures to strengthen its financial structure and reinforce long-term growth.