Korean Air Soars with Strong Q1 2025 Non-Consolidated Results

• Korean Air recorded revenue of KRW 3.9559 trillion (USD 2.6975 billion) for the first quarter of 2025, marking a 3% increase year-on-year. The growth was driven by strong demand in both passenger and cargo sectors despite business environment uncertainties. Operating profit for the quarter reached KRW 350.9 billion (USD 239.3 million), a 19% decrease year-on-year, primarily due to higher operating costs related to the depreciation and maintenance of newly introduced aircraft, as well as increased operating unit costs resulting from currency fluctuations.

• A key factor contributing to the rise in operating costs was the addition of new aircraft, with deliveries previously postponed due to the pandemic. These aircraft are part of Korean Air’s broader strategy to boost capacity and elevate service quality over the mid to long term. By deploying its latest aircraft, the airline aims to grow its global network, enhance the passenger experience, and strengthen overall profitability.

• The passenger business generated KRW 2.4355 trillion in revenue during the first quarter, marking a 4% increase year-on-year. Despite heightened competition from increased market capacity and various domestic and international uncertainties, strong travel demand during the Lunar New Year and March holiday period supported both revenue and traffic growth.

• Korean Air’s cargo division recorded first-quarter revenue of KRW 1.0540 trillion, up 6% year-on-year. Despite challenges such as U.S. tariff policies, robust demand persisted across core sectors including e-commerce, electronics, automotive parts and fresh exports from Korea. The airlines further strengthened cargo performance through agile capacity adjustments and strategic efforts to secure stable, long-term demand from key clients.

• Korean Air expects continued growth in the passenger business in the second quarter, fueled by strong travel demand during the early May holidays. Strong performance is anticipated on outbound routes from Korea to Southeast Asia, China and Japan. To maximize profitability, the airline plans to explore new destinations and expand charter flight operations. In the cargo sector, the airline will closely monitor fluctuations related to U.S. trade policies and respond swiftly to maintain operational flexibility and support revenue stability.

[Q1 2025 Results (Non-consolidated)]