Korean Air Lines(003490) said in a filing on the 13th that its separate operating profit for the second quarter of this year was provisionally tallied at 261.8 billion won, down 34% from the same period last year.
Revenue for the same period came to 5.0199 trillion won, up 26%. Net income recorded a loss of 97.3 billion won, turning to a deficit from 395.9 billion won in the same period last year.
Korean Air Lines' second-quarter sales by business institutional sector this year showed passenger business at 2.8479 trillion won, up 18.8% from a year earlier. During the same period, cargo institutional sector revenue came to 1.5419 trillion won, up 46.1%.
Korean Air Lines said passenger business saw some weakening in Korea-origin demand due to higher oil prices, but revenue increased as transfer demand in the Middle East and inbound demand to Korea grew.
In the cargo business, air cargo demand increased on the back of expanded global investment related to artificial intelligence (AI) and strong exports of K-beauty products, and the company said it boosted revenue by actively attracting high value-added cargo and flexibly operating routes through extra sections.
Korean Air Lines said operating profit fell in the second quarter due to higher fuel expenses following rising oil prices, but it expects passenger demand to rebound thanks to fuel surcharge cuts that began in the third quarter and the summer peak season effect.
For the cargo business, the policy is to actively attract growth demand, including AI-related industries, to secure a stable revenue base.
Korean Air Lines explained that the turnaround to a net loss in the second quarter was largely due to foreign exchange translation gains and losses stemming from the strong dollar.
It said non-operating profit and loss increased as the won-denominated prices of expenses paid in dollars under contracts such as aircraft leases and jet fuel rose.
Korean Air Lines posted 312.9 billion won in revenue from foreign exchange translation gains and losses in the second quarter of last year, but recorded a loss of 145 billion won in the second quarter of this year.