Korean Air reported an operating profit of $410.4 million, about 26% decrease year-on-year in the fourth quarter (Q4) of 2022. The airline recently released a report of its financial transactions in Q4. The airline achieved a revenue to $2.846bn, a 28% Y-O-Y increase following the recovery in passenger demand and steady cargo profit.
The airline’s Q4 passenger revenue rose 339% year-on-year to KRW 1.6648 trillion, with growing air travel demand with Japan’s revised border measures and seasonal peak.
The airline reported an increase in passenger revenue over cargo revenue, as the cargo revenue fell 29% year-on-year to KRW 1.5483 trillion. The cargo business was affected by diminished demand due to global economic slowdown, decrease in shipment rates following the increase in passenger plane belly and bulk cargo capacity.
The airline expects passenger traffic demand to continue to increase gradually in the first quarter of 2023 and will focus on normalisation of its passenger business by monitoring and effectively responding to market trends.
With the global economic slowdown, the airline forecasts weaker air cargo demand. The airline seeks to secure demand by strengthening cooperation with large consignors and global forwarders, and respond to market volatility by enhancing service quality, including additional certification on special cargo.
To tackle uncertainties in post-pandemic 2023, Korean Air will be prepared to face business environment changes, and also strengthen its foundation for mid- to long-term growth for acquisition of Asiana Airlines.