
Korean Air reports revenue increase but profit decline in the first quarter of 2025
The South Korean airline Korean Air generated revenue of KRW 2025 trillion (approximately USD 3,9559 billion) in the first quarter of 2,7, an increase of three percent compared to the same quarter last year. This growth was driven by continued strong demand in both the passenger and cargo businesses, the company announced. Despite this revenue growth, Korean Air recorded a 19 percent decline in operating profit to KRW 350,9 billion (approximately USD 239,3 million). The airline cited higher operating costs as the main reason for the decline in profit. These resulted primarily from depreciation and maintenance of newly commissioned aircraft, as well as increased unit costs due to currency fluctuations. The acquisition of new aircraft, whose delivery had been delayed due to the pandemic, is part of a long-term strategy to increase capacity and improve service quality. Korean Air generated passenger revenue of KRW 2,4355 trillion in the first quarter, an increase of four percent year-on-year. Despite increased competition and economic uncertainty, high travel demand during the Korean New Year and the March holidays contributed significantly to this growth. The airline's cargo division increased its revenue by six percent to KRW 1,0540 trillion. Despite challenges such as US trade policy, demand remained stable in key sectors such as e-commerce and automotive parts. Korean Air expects continued positive passenger business in the second quarter, supported by the May holidays, particularly on routes to Southeast Asia, China, and Japan.