Seoul: Korean Air Co. announced a significant decline in its third-quarter net income, reporting a drop of over 60 percent compared to the previous year, primarily due to increased operating costs. The airline's net profit for the July-September period was recorded at 91.8 billion won (US$64.3 million), marking a 67 percent decrease from the same period last year.
According to Yonhap News Agency, the company experienced a 6 percent reduction in sales, amounting to 4 trillion won, down from 4.24 trillion won the previous year. Operating profit saw a 39 percent decrease, reaching 376.3 billion won. The rise in overall operating expenses was attributed to higher maintenance costs, despite a reduction in fuel prices.
The passenger business generated 2.42 trillion won in sales, reflecting a decrease of 196.2 billion won compared to the previous year. This decline was attributed to the shift of the Chuseok holiday from September in 2024 to October this year, alongside temporary factors such as stricter U.S. entry regulations. Cargo business sales also fell, reaching 1.07 trillion won, down 53.1 billion won from the previous year, amidst a slight slowdown in the global air cargo market due to U.S. tariff risks.
Looking forward, Korean Air expressed optimism for improved performance in the fourth quarter, driven by the long Chuseok holiday in October and the anticipated year-end peak travel season.