Seoul, Oct 21 Korean Air Co. said on Tuesday its third-quarter net income declined over 60 per cent from a year earlier, as increased operating costs weighed down on its earnings.
The national flag carrier's net profit reached 91.8 billion won ($64.3 million) during the July-September period, down 67 per cent from a year ago, the airline said in its statement.
Sales dropped 6 per cent on-year to 4 trillion won, compared with 4.24 trillion won from the same period last year. Operating profit came to 376.3 billion won, down 39 per cent on-year.
The company said overall operating expenses increased due to higher maintenance costs despite a drop in fuel prices.
The passenger business sales totaled 2.42 trillion won, down 196.2 billion won from a year earlier. The decline was mainly due to the shift in the Chuseok holiday from September in 2024 to October this year, as well as temporary variables including stricter US entry regulations.
Sales of the cargo business reached 1.07 trillion won, down 53.1 billion won from last year, amid a slight slowdown in the global air cargo market in light of US tariff risks.
“Revenue fell due to increased global supply and intensifying price competition. Fuel costs decreased, but overall operating expenses rose as depreciation, maintenance costs, and airport and passenger-related costs increased, reducing operating profit as well,” the airline said.
Looking ahead, Korean Air said it expects improved performance across its passenger network in the fourth quarter, supported by its performance during the long Chuseok holiday in October and the year-end peak travel season.
"We will improve profit through flexible capacity operations that reflect changes in market conditions, the maximum attraction of e-commerce demand, and the expansion of high value-added cargo,” according to the airline.
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