Korean Air disclosed on the 15th that it posted 1.5393 trillion won in operating profit last year (separate, preliminary). That was down 19% from a year earlier. It was interpreted as the effect of higher expense from intensified competition among global airlines and a strong dollar.
Last year's revenue was 16.5019 trillion won, up 2% from the previous year. A Korean Air official said, "Competition in the global airline market is expected to become even fiercer this year," and added, "We will steadily strengthen customer-centered service competitiveness while preparing systematically to launch an integrated airline."
Fourth-quarter operating profit was 413.1 billion won, down 5.1%. Fourth-quarter revenue was 4.5516 trillion won, up 13%.
Fourth-quarter passenger business revenue came to 2.5917 trillion won, up 217.1 billion won from a year earlier. On North America routes, tighter entry restrictions and intensified competition on West Coast routes led to some stagnation, but revenue increased as short-haul demand centered on Japan and China grew during the early-October Chuseok long holiday last year.
Fourth-quarter cargo business revenue was 1.2331 trillion won, up 35.1 billion won from the same period a year earlier. With reduced external uncertainty from U.S.-China tariff suspension talks, a stable inflow of e-commerce demand, year-end consumption seasonality, and expanded contracted volumes, it maintained stable revenue.
For the passenger business in the first quarter of this year, considering the recent weak won and softening Korea-origin demand, it plans to expand sales originating overseas. During the demand-concentrated period early in the year, including the Lunar New Year holiday in Feb., it will expand flexible capacity to improve profitability.
For the cargo business, considering the outlook for uncertain external conditions such as a slowdown in global economic growth, it plans to diversify its portfolio and maximize profitability through flexible freighter capacity operations linked to market conditions.