Korean Air posted record quarterly revenue for the July-September period on surging inbound and steady cargo demand, despite persistently high fuel costs, the national flag carrier said Thursday.
According to preliminary earnings data, third-quarter revenue reached 5.04 trillion won ($3.8 billion), the highest of any quarter in the company’s history, up more than 1 trillion won, or 26 percent, from a year earlier.
Operating profit climbed 12 percent to 421.2 billion won. Net income soared more than tenfold to 929.7 billion won, boosted by a lower won-dollar exchange rate at quarter’s end.
The third quarter lifted revenue for the first nine months 22 percent to 14.58 trillion won, with operating profit for the period up 7 percent to 1.2 trillion won.
Both passenger and cargo operations expanded in the quarter.
Passenger revenue increased by 496.3 billion won to 2.92 trillion won. Higher fuel surcharges and a weak won dampened outbound travel, but a sharp rise in inbound visitors and Incheon transit passengers offset the dip. The carrier also added summer capacity on US and Japan routes.
Cargo revenue climbed by 365.6 billion won to 1.43 trillion won on steady semiconductor shipments and the airline’s swift response to regional market swings.
"The prolonged Middle East war will likely keep fuel costs high in the fourth quarter," Korean Air said in a statement. "We will grow passenger earnings on inbound and transit demand and flexibly manage cargo capacity to maximize revenue in the peak season, backed by steady artificial intelligence and semiconductor demand."
minmin@heraldcorp.com