Korean Air said that it will focus on “enhancing profitability, amid political and economic uncertainties”, as the airline estimates it will post a revenue of 3.96 trillion Korean won ($2.78bn) for the first quarter of the year.
This is a revenue increase of 3.5% in comparison to the same quarter of the year prior, with the airline citing strong passenger and cargo demand.
Korean also estimates that passenger revenue will rise 4%, as travel surged during the Lunar New Year and early spring holidays, while cargo revenue increased 5.8%, supported by e-commerce and semiconductor shipments.
However, despite an increase in revenue, Korean estimated that operating income will fall nearly 20% to 350.9bn won ($246.6 million), due to a 6.5% rise in operating expenses. Non-fuel costs including labour and airport handling rose 13% in comparison to the first quarter of 2024, while fuel expenses dropped by 6.3%.
Additionally, the airline’s net income is projected to total 193.2bn won ($135.8 million), down 152bn won ($106.8 million) from the first three-month period of 2024.
Korean also anticipates continued strength in outbound demand, particularly on routes to Southeast Asia, Japan, and China.
The airline will also retrofit existing 777-300ERs, entering the refurbished aircraft into service sequentially from the second half of the year to 2026.