Korean Air Reports Q3 Profit; Cargo Breaking Records

(15 Nov 2021)  Korean Air has reported a revenue of KRW 2.227 trillion (USD 1.879 billion) and an operating profit of KRW 438.6 billion (USD 370 million) in its third quarter financial results.

The cargo business achieved revenue of KRW 1.6503 trillion (USD 1.393 billion), the highest quarterly revenue recorded to date.

The airline's strong performance can be attributed to the global supply chain bottleneck, increase in air cargo demand, and a lack of passenger flight belly cargo capacity, which have led to the increase in shipment volumes and rates.

Korean Air Cargo Boeing 747-8F. Picture by Steven Howard of TravelNewsAsia.com

The previous quarterly cargo revenue record was in Q2 2021, with KRW 1.5108 trillion.

While passenger demand remained low in the third quarter due to the spread of COVID19 variants, stronger demand on the Americas network and the resurgence in summer domestic travel attributed to a 55% increase in sales compared to the second quarter, amounting to KRW 331.9 billion (USD 280.1 million).

Cargo business performance forecast is to remain robust through the fourth quarter with holiday and year-end peak demand, and continued supply imbalance.

The airline has confirmed that it will continue to operate its cargo-only passenger flights to maximize aircraft utilization and increase air cargo capacity. The airline will also secure alternative airports, and recruit additional ground handling contractors to sustain its profitable operation.

Korean Air expects passenger demand to remain weak in the fourth quarter. However, with more countries reopening their borders, prospects of increased passenger demand are more likely.

The airline plans to flexibly operate and gradually expand its regular and charter flights to destinations that do not require quarantine upon arrival such as Hawaii, Guam, Chiang Mai and Spain.