South Korea’s flagship carrier Korean Air reported a 34% decline in operating profit for the second quarter—April through June—slipping to 261.8 billion won ($174.5 million) from 398.9 billion won a year earlier. The drop was largely attributed to soaring fuel costs, which weighed heavily on margins despite strong overall revenue growth.
Record Quarterly Revenue Fueled by Cargo, Beauty Exports, and AI Demand
Total revenue rose 26% year-on-year to 5.02 trillion won—the highest ever recorded for the airline’s second quarter. Passenger revenue climbed nearly 19% annually to 2.85 trillion won, supported by robust inbound tourism and sustained demand for air travel. Geopolitical instability in the Middle East contributed to increased passenger traffic, helping offset a slowdown in outbound travel from South Korea amid higher oil prices.
Cargo revenue surged approximately 46% year-on-year to 1.54 trillion won. This sharp growth was driven by global investment in artificial intelligence infrastructure—and strong exports of South Korean beauty products, a key segment of the country’s cultural and industrial soft power.
Outlook: Summer Travel Boost and Strategic Cargo Focus
Korean Air expects a rebound in passenger demand during the third quarter, buoyed by peak summer travel season and lower fuel cost pressures. At the same time, the airline is strategically targeting high-growth cargo segments—particularly those linked to AI-related hardware and supply chains—to sustain its revenue momentum.