Korean Air expects global air travel demand in 2014 to increase by 5.9% on economic recovery and the boosting of transit demand within and via Asia.
The carrier said in an investor presentation that it plans to raise its passenger and cargo traffic this year, in line with the growing demand. To achieve this, it will aim for a 3% increase in traffic while increasing capacity by 1.3%. Load factor should hit 78%.
It also wants to increase profit by "strengthening high class sales" and expanding its charter services to new destinations. It will also adjust its schedules in line with the market environment and demand fluctuation, such as frequency increases from Seoul Incheon to select destinations in Asia, Europe and North America.
On the cargo front, it aims to secure new sources of income by developing niche markets for cargo on passenger aircraft by transporting medical supplies, agricultural product, and “direct overseas purchase products”. It also hopes to expand demand by cooperating with major companies and global forwarders, and with Korean companies that seek to expand their overseas production facilities.
Korean Air posted an operating loss of won (W) 18 billion ($16.8 million) in 2013, reversing the W229 billion operating profit in the year before. Operating revenue for the year ended 31 December 2013 declined 4% to W11.8 trillion.