Korean Air logs record Q2 revenue despite fuel-driven profit dip

(Korean Air)

Korean Air posted record second-quarter revenue on robust passenger travel and cargo demand, although operating profit slipped amid higher fuel costs, the national flag carrier said Monday.

According to preliminary earnings data, second-quarter revenue rose 26 percent from a year earlier to 5.02 trillion won ($3.4 billion), marking the company's strongest April-to-June performance on record.

Operating profit fell 34 percent to 261.8 billion won, pressured by higher jet fuel prices following the escalation of conflict in the Middle East, while net income swung to a loss, the company said.

For the first half, revenue increased 20 percent to 9.54 trillion won. Operating profit edged up 4 percent to 778.7 billion won, indicating that higher earnings earlier in the year more than offset the second-quarter slowdown.

Both passenger and cargo operations delivered strong growth in the quarter.

Passenger revenue climbed by 451.4 billion won to 2.85 trillion won as inbound tourism and transit traffic increased, and cargo revenue rose by 486.5 billion won to 1.54 trillion won on strong demand for semiconductor shipments and K-beauty exports, supported by flexible route operations and a greater focus on high-yield cargo.

"We expect passenger demand to rebound in the third quarter, supported by lower fuel surcharges, peak summer travel, and growth in both inbound and outbound demand," Korean Air said in a statement. "In cargo, we will keep targeting high-growth sectors, particularly AI-related industries, while flexibly managing capacity to maximize revenue and profitability."