Korean Air hits record Q3 revenue of 5.04 trillion won

Korean Air reported record third-quarter revenue of 5.0448 trillion won, a 26% increase from the previous year, despite rising fuel costs. Operating profit rose 12% year-on-year to 421.2 billion won. Net profit saw a massive 912% surge to 929.7 billion won, largely driven by foreign exchange translation gains due to a decline in the KRW/USD exchange rate.

Revenue growth was supported by strong passenger demand for international transit through Incheon and robust air cargo demand, particularly for high-value AI and semiconductor-related goods. While passenger revenue reached 2.9174 trillion won, operating profit fell short of market expectations due to increased labor costs, including additional performance bonus provisions.

Analysts remain cautiously optimistic about the fourth quarter, citing the seasonal peak for air cargo and the upcoming launch of the integrated Korean Air on December 17. However, geopolitical risks in the Middle East and high jet fuel prices remain significant variables. The long-term profitability of the upcoming merger with Asiana Airlines is also identified as a key factor for future growth.