Korean Air recorded an operating profit of 350.9bn Korean won ($246.6 million) during the first quarter of the year, a 20% decline in comparison to the first quarter of the year prior.
This is in addition to posting a net income of 193.2bn won ($134.9 million), down 44% from the first three-month period of 2024.
Korean said these declines can be attributed to “higher operating costs” related to the depreciation and maintenance of newly introduced aircraft, as well as increased operating unit costs resulting from currency fluctuations.
Despite these declines, the airline's revenue for the quarter was up 3% on the previous year, totalling 3.96 trillion won ($2.76bn). These are figures which align with estimates made by the airline last week.
Focusing on Korean Air's cargo division, it recorded a first-quarter revenue of 1.05 trillion won ($734.7 million), up 6% on the first quarter of 2024. The airline said that this increase was achieved despite challenges such as US tariff policies, robust demand persisted across core sectors including e-commerce, electronics, automotive parts and fresh exports from Korea.
Looking ahead to the year's second quarter, Korean Air expects continued growth in its passenger business, fuelled by strong travel demand during the early May holidays. Strong performance is also anticipated on outbound routes from Korea to Southeast Asia, China and Japan.
“To maximise profitability, Korean Air plans to explore new destinations and expand charter flight operations,” the airline said in a statement.
When looking at its cargo sector, the carrier said it will "closely monitor" fluctuations related to US trade policies and will respond "swiftly" to maintain operational flexibility and revenue stability.
South Korea was hit by 25% tariffs on imports by President Trump on April 2, 2025, after the US president-imposed tariffs on global economies. President Trump’s recently imposed 90-day pause on some tariffs now means that South Korea’s new president, which is set to be elected in early June, will be tasked with negotiate with the US on import tariffs.