Korean Air announced its preliminary financial results for the fiscal year ending December 2023, reporting a net profit of 9,168 billion Korean Won (approximately 101.6 billion yen).
Revenue was 14.5751 trillion Korean Won (an increase of 8.7% from the previous fiscal year), and operating profit was 1.5869 trillion Korean Won (a 45% decrease). The net profit halved compared to the previous period.
Despite recording the highest revenue in its history, the normalization of cargo transportation, which had been profitable during the COVID-19 pandemic, contributed to the decrease in operating profit. However, the company still reported operating profit more than three times that of 2019.
Passenger services saw an increase in revenue due to the recovery in demand and higher occupancy rates for premium classes, even though supply remained at 80% of the 2019 level. For the first quarter of 2024, both supply and demand are expected to normalize, with strong long-haul routes and an expansion of supply for tourist routes in Southeast Asia and Japan.
Cargo operations maintained higher profitability than in 2019. Despite uncertainty in the timing of demand reversal for semiconductors, automobiles, and displays due to a delayed global economic recovery in the first quarter of 2024, the company plans to flexibly respond to ongoing e-commerce demand and supply chain disruptions caused by international crises.
