Korean Air sees record sales in Q2, SK Biopharm turns profitable

[Courtesy of Korean Air Lines Co.]

Korean Air Lines Co. reported its highest-ever quarterly sales in the second quarter of 2024. Despite the latest milestone, however, operating profit declined due to increased costs associated with route expansion.

The airline announced on Thursday that its sales for the second quarter rose by 13.8 percent year-over-year to 4.13 trillion won ($2.9 billion), as it responded promptly to seasonal passenger demand and made efforts to promote air cargo services.

Sales from the passenger business increased by 10 percent from the previous year to hit 2.44 trillion won. This was bolstered by increased capacity on all routes, including China, and strong demand for commercial travel to the Americas and Europe. According to the Ministry of Land, Infrastructure and Transport, Korean Air offered 5.15 million seats on international routes during the April to June period, a 23.4 percent increase from the same period in 2023.

The cargo business sales also saw a 14 percent increase to hit 1.09 trillion won. The growth was thanks to stable demand for air cargo, driven by rising e-commerce volumes from China and improved performance in the semiconductor, automotive, and display industries.

SK Biopharmaceuticals Co., a biochemical stock listed on South Korea’s benchmark KOSPI, reported an operating profit of 26 billion won for the second quarter of 2024. It was a significant turnaround from the 18.9 billion won operating loss in the same period a year before.

The recent earnings were 103.8 percent higher than the average market forecast of 12.8 billion won compiled by Yonhap Infomax. The company’s revenue grew by 74 percent year-over-year to 130.4 billion won, with net profit turning positive at 24.6 billion won.