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Korean Air Profit Drops 67% in Q3 on Higher Costs and Softer Cargo

The carrier plans flexible winter capacity to support a fourth-quarter rebound.

Overview

  • Net profit fell to 91.8 billion won, with revenue at about 4.01 trillion won down 6 percent and operating profit at 376.3 billion won down 39 percent year-on-year.
  • Passenger revenue slid to 2.42 trillion won as stricter U.S. entry rules, a shift of the Chuseok holiday into October, and tougher fare competition reduced third-quarter demand.
  • Cargo revenue eased to roughly 1.07 trillion won as the air freight market softened in the face of U.S. tariff risks.
  • Overall expenses rose on maintenance, depreciation, and airport fees despite slightly lower fuel costs, and a weak won is inflating dollar-denominated outlays with a 10-won move implying about 27 billion won in forex losses.
  • Korean Air expects stronger fourth-quarter traffic from the October holiday and year-end peak and will adjust capacity toward popular winter routes, while analysts warn LCCs face heavier pressure with Jeju Air and peers forecast to post steep declines.