DALLAS – Korean Air (KE) has posted its financial results for Q4 2022, revealing an operating profit of KRW3.6tr (US$2.846bn). The airline said this was thanks to ‘the recovery in passenger demand and steady cargo profit’ and was a 28% increase year-on-year.
Significant growth in passenger traffic has also been seen, carrying around four times as many passengers compared to the same period in 2021. KE said this was thanks to the easing of travel restrictions across Asia.
It now expects passenger numbers to continue to increase moving forward and will ‘will focus on normalization of its passenger business by monitoring and effectively responding to market trends.’
Cargo Demand Decrease
However, Korean has seen a drop in cargo revenue, falling 29% year-on-year to KRW1.54tr. (US$1.25bn). It blamed the downturn on ‘diminished demand due to global economic slowdown’ and a drop ‘in shipment rates following the increase in passenger plane belly and bulk cargo capacity.’
It added that it expects cargo demand to continue to fall due to the global economic slowdown. To counteract this, KE said it would be seeking to strengthen its ‘cooperation with large consignors and global forwarders’ to secure additional demand.
The airline is still awaiting approval from several competition bodies on its proposed merger with Asiana Airlines (OZ). Previously, KE Chairman Walter Cho said, “2023 is a pivotal year for completing the huge task of closing our acquisition of Asiana Airlines. We are in the last stage with the remaining overseas competition authorities reviewing the merger.”
Featured Image: Korean Air Boeing 787-9. Photo: Marat Basaria/Airways.
Check out our December 2015 issue, where K.D. Leperi details her experience onboard a Korean Air Airbus A380 from Los Angeles to Seoul.