Korean Air logs record sales despite profit drop

(Korean Air)

Korean Air said Thursday that it notched record annual revenue last year, even as operating profit slid nearly 20 percent as a weaker won and surging costs undercut margins.

According to the national flag carrier, estimated revenue in 2025 rose to a record 16.5 trillion won ($11.2 billion), up 2 percent from 16.1 trillion won a year earlier.

Operating profit fell 19 percent to 1.54 trillion won, while net income dropped an even steeper 21 percent to 965 billion won. The company explained that inflation continued to push up costs across the business.

In the fourth quarter, when revenue rose 13 percent on-year to 4.55 trillion won and net income surged 13 percent to 284 billion won, both the passenger and cargo businesses contributed to top-line growth.

Passenger revenue rose 217.1 billion won to 2.59 trillion won, driven by strong demand for travel to Japan and China, while traffic on North American routes remained flat amid tougher rules and stiffer competition on West Coast routes.

Cargo revenue rose 35.1 billion won to 1.23 trillion won, as easing uncertainty over US-China tariff talks, steady e-commerce shipments and strong year-end seasonal demand helped stabilize earnings.

As it braces for the new year, Korean Air said it would boost overseas sales to offset the weak won and softer outbound demand, and expand capacity on peak days around the Lunar New Year in February to lift margins. In cargo, the airline plans to diversify its portfolio and operate freighters more flexibly amid global economic uncertainty.

“Competition will sharpen as global passenger capacity rebounds more quickly, even as policy uncertainty grows worldwide,” a Korean Air official said. “We plan to adapt swiftly to shifting conditions and, building on systematic preparations for an integrated airline, continue to offer top-tier service.”