Korean Air expects to see “continued growth” in its passenger business in the near-term, on the back of strong demand and despite recent “business environment uncertainties”.
The SkyTeam operator says outbound demand from South Korea to Japan, Southeast Asia and China is expected to perform strongly in the April-June quarter.
“To maximise profitability, the airline plans to explore new destinations and expand charter flight operations,” it adds.
Korean Air’s comments come as it reports its first-quarter earnings amid global economic uncertainty stemming from the Trump administration’so trade war.
For the three months to 31 March, the airline, which recently unveiled a new corporate identity, saw its operating revenues improve 3% year on year to W3.96 trillion ($2.75 billion) as passenger and cargo demand held strong.
“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 both revenue and traffic growth,” the airline states.
Passenger revenues inched up 4%, while cargo revenue was up 6%, despite “challenges” surrounding Trump’s tariff policies.
Nonetheless, the airline reported a 19% drop in its quarterly operating profit to around W351 billion, while net profit fell 44% to W193 billion.
This came amid higher operating costs related to depreciation and maintenance of newly-introduced aircraft. Korean also took on higher unit costs as a result of currency fluctuations.
However, Korean Air says the new aircraft, which include Boeing 787-10s and A350s, were crucial in its broader long-term strategy “to boost capacity and elevate service quality”.
It states: “By deploying its latest aircraft, the airline aims to grow its global network, enhance the passenger experience, and strengthen overall profitability.”
