Korean Air has reported its tentative financial results for the fourth quarter of 2022. The airline saw a 28% YoY increase in revenue, totaling KRW 3.6068 trillion (USD 2.846 billion) thanks to the recovery in passenger demand and steady cargo profits. Despite this, the operating profit showed a 26% decrease YoY, reaching KRW 520.1 billion (USD 410.4 million).
The passenger revenue rose significantly by 339% YoY to KRW 1.6648 trillion due to increasing air travel demand, particularly with Japan’s revised border measures and the seasonal peak in Southeast Asia and Oceanic demand. This marks a shift, as passenger revenue now exceeds cargo revenue, indicating a full-fledged recovery phase in passenger demand.
However, the cargo revenue saw a 29% decrease YoY to KRW 1.5483 trillion, affected by the global economic slowdown and a decrease in shipment rates due to the increase in passenger plane belly and bulk cargo capacity.
In light of this, Korean Air forecasts passenger traffic demand to continue to increase gradually in the first quarter and will focus on normalizing its passenger business by closely monitoring market trends. On the other hand, the airline predicts weaker air cargo demand due to the global economic slowdown and seeks to secure demand by strengthening cooperation with large consignors and global forwarders and enhancing service quality, including additional certification for special cargo.
To tackle uncertainties in the post-pandemic era of 2023, Korean Air is preparing to face business environment changes and strengthening its foundation for mid- to long-term growth, including the acquisition of Asiana Airlines.