Seoul, July 11: Korean Air reported a stable second-quarter performance in 2025, maintaining revenue despite mounting concerns over global economic slowdown and trade tensions. The airline generated KRW 3.99 trillion (USD 2.94 billion) in revenue, marking a marginal year-on-year decrease of 0.9 per cent. Operating profit declined by 3.5 per cent to KRW 399 billion (USD 294.2 million), primarily due to higher personnel and depreciation expenses, despite lower fuel costs.
Passenger revenue dipped by 2 per cent to KRW 2.40 trillion, though key profitability indicators held steady. This was largely attributed to proactive network adjustments during off-peak periods and a surge in travel demand during Korea’s early May holiday.
Cargo revenue fell by 4 per cent to KRW 1.06 trillion as the airline contended with volatile demand stemming from U.S. tariff policies. In response, Korean Air diversified its cargo portfolio, prioritising high-yield items such as semiconductors, batteries, solar cells, and seasonal perishables to protect margins.
Looking ahead, the airline expects strong passenger demand in the third quarter, coinciding with the summer peak season. Korean Air plans to implement dynamic capacity management on key routes to optimise revenue. In cargo, the airline will continue focusing on network flexibility and responsiveness to maintain stable profits amid geopolitical uncertainty.
For the first half of 2025, revenue rose 1 per cent year-on-year to KRW 7.94 trillion, while operating profit dropped by 12 per cent to KRW 749.9 billion. Net income declined by 15 per cent to KRW 589.1 billion.
Despite profit pressures, Korean Air remains optimistic, relying on strategic adjustments and cost management to navigate global challenges.
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