Korean Air posts record quarterly sales of W5.4tr

Korean Air posted its highest-ever quarterly sales Thursday, even as elevated fuel prices weighed on costs.

The airline's preliminary standalone sales for the third quarter reached 5.04 trillion won ($3.77 billion), up 26 percent from a year earlier — an increase of 1.04 trillion won and a new quarterly record.

Operating profit rose 12 percent to 421.2 billion won. Net profit for the period surged 912 percent to 929.7 billion won, partly reflecting a weaker won-dollar exchange rate at the end of the quarter.

For the first nine months of the year, cumulative sales climbed 22 percent to 14.58 trillion won. Cumulative operating profit grew 7 percent to 1.2 trillion won, while cumulative net profit for the period rose 58 percent to 1.08 trillion won.

Passenger revenue reached 2.92 trillion won, up 496.3 billion won from a year earlier. Demand from travelers departing South Korea was somewhat subdued due to fuel surcharges and a weak won, but strong inbound demand from overseas and rising transit traffic through Incheon more than offset the shortfall. Korean Air said it expanded supply on routes to the Americas and Japan during the summer peak season to meet demand.

Cargo revenue rose 365.6 billion won to 1.43 trillion won, driven by steady demand for high-value freight tied to AI and semiconductors. The airline said it maximized returns by adjusting to shifting demand across regional markets.

Korean Air said fuel cost pressures from the prolonged war in the Middle East are expected to persist into the fourth quarter.

On the passenger side, the airline plans to grow earnings by focusing on inbound and transit demand through South Korea. For cargo, it intends to capitalize on the traditional peak season in the fourth quarter and sustained demand for key items such as AI-related goods and semiconductors, flexibly managing supply in line with market conditions to maximize revenue.

Meanwhile, with the launch of an integrated Korean Air set for Dec. 17, the airline said all employees would reexamine its absolute safety framework and raise service quality as it aims to grow into a global network carrier.