Markus Mainka / Shutterstock.comKorean Air has reported a staggering tenfold increase in its net profit for the third quarter, driven by strong passenger and cargo demand alongside a stronger won. The airline's net profit for the July-to-September period reached 929.7 billion won (US$692.2 million), a significant rise from 91.9 billion won in the same period last year, according to its preliminary earnings report.
Operating profit also saw a 12% increase, reaching 421.2 billion won, whilst sales surged by 26% to a record quarterly high of 5.04 trillion won. The airline attributed the impressive performance to a 496.3 billion won increase in passenger revenue, totalling 2.91 trillion won, fuelled by strong inbound travel demand to Korea. Additionally, cargo revenue rose by 365.6 billion won to an estimated 1.43 trillion won, supported by robust shipments of high-value goods such as semiconductors and AI-related products.
Despite the strong performance, Korean Air cautioned that its passenger business might face challenges in the fourth quarter due to rising fuel costs amid the ongoing conflict in the Middle East. The airline's ability to navigate these potential headwinds will be crucial in maintaining its financial momentum.
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