SINGAPORE, 18 April 2025: Korean Air reported strong demand in both passenger and cargo sectors during the first quarter of 2025, but operating profit at KRW350.9 billion (USD239.3 million) declined by 19%.
Korean Air recorded revenue of KRW3.9559 trillion (USD2.6975 billion) for the first quarter of 2025, a 3% increase year over year.
The quarter’s dip in operating profit was blamed primarily on higher operating costs related to the depreciation and maintenance of newly introduced aircraft and increased operating unit costs resulting from currency fluctuations.
A key factor contributing to the rise in operating costs was the addition of new aircraft, with deliveries previously postponed due to the pandemic. These aircraft are part of Korean Air’s broader strategy to boost capacity and elevate service quality over the mid to long term. By deploying its latest aircraft, the airline aims to grow its global network, enhance the passenger experience, and strengthen overall profitability.
The passenger business generated KRW2.4355 trillion in revenue during the first quarter, marking a 4% increase year-on-year. Despite heightened competition from increased market capacity and various domestic and international uncertainties, strong travel demand during the Lunar New Year and March holiday period supported revenue and traffic growth.
The airline expects continued growth in the passenger business in the second quarter, fueled by strong travel demand during the early May holidays. Strong performance is anticipated on outbound routes from Korea to Southeast Asia, China and Japan.
