Korean Air has announced its tentative financial results for the fourth quarter of 2025, revealing a revenue increase of 13% year-on-year to KRW 4.5516 trillion (US$3.1721 billion). However, the airline's operating profit fell to KRW 413.1 billion (US$287.9 million), a decrease attributed to rising operating costs.
The passenger business saw a revenue boost to KRW 2.5917 trillion, up KRW 217.1 billion from the previous year. This growth was largely driven by increased short-haul demand, particularly to Japan and China during the Chuseok holiday in October. Despite stable demand on North American routes, competition on the West Coast limited further gains.
Cargo operations also experienced a revenue increase, rising by KRW 35.1 billion to KRW 1.2331 trillion. This stability was supported by consistent e-commerce inflows and reduced market volatility following US-China tariff negotiations.
Looking ahead to the first quarter of 2026, Korean Air plans to enhance passenger revenue by expanding sales in overseas markets to counteract the weak Korean won and declining outbound demand from Korea. The airline aims to adjust capacity to meet peak demand periods, such as the Lunar New Year holiday. For the cargo sector, Korean Air intends to maximise profitability through portfolio diversification and flexible freighter operations amidst global economic uncertainties.
As the airline anticipates a more competitive environment in 2026, it remains committed to maintaining high service standards whilst preparing for the launch of its integrated airline.
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