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Korean Air records best Q3 operating profit since 2016
November 15th 2021
South Korean flag carrier, Korean Air (KAL), was back in the black in its third quarter as strong cargo demand largely contributed to a KRW134 billion (US$113 million) net profit. Read More » KAL said an operating profit for the quarter of KRW438.6 billion ($US370 million) delivered its best such result for the quarter since 2016 and represented a massive 5,671% year-on-year increase. Revenue was up 44% year-on-year, to KRW2.23 trillion (US$1.88 billion). A slump in passenger demand saw KAL pivot to cargo operations during the coronavirus pandemic. The result of the changed strategy was record quarterly revenue for its cargo business of KRW1.65 trillion (US$1.4 billion). KAL attributed the strong performance to an increase in volumes and rates stemming from the global supply chain bottleneck, a rise in air cargo demand and a lack of passenger flight belly capacity. It expects the performance of the cargo business to remain robust during the fourth quarter due to holiday and year-end peak demand and the continuing supply imbalance. “The airline will continue to operate its cargo-only passenger flights to maximize aircraft utilization and increase air cargo capacity,’’ KAL said, and added it was securing alternative airports and recruiting additional ground handling contractors. Passenger demand, on the other hand, is forecast to remain weak in the fourth quarter. “However, with more countries reopening their borders, prospects of increased passenger demand are more likely,’’ KAL said. “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.”
