SEOUL — Korean Air Co., the largest airline in South Korea, announced a decrease in net profit for the second quarter of the year, attributing the 6 percent year-on-year decline primarily to rising fuel and labor costs. This financial update highlights the ongoing challenges faced by the aviation sector amid fluctuating global economic conditions.
According to Yonhap News Agency, the net profit for the quarter ending in June was 349 billion won (approximately US$251.2 million), down from 371.5 billion won during the same period last year. Additionally, the airline's operating profit decreased by 12 percent to 413.4 billion won, down from 468 billion won a year earlier. Despite these challenges, the company reported a 14 percent increase in sales, totaling 4.02 trillion won, up from 3.53 trillion won in the previous year.
The airline noted that the increase in sales was driven by a 10 percent rise in revenue from the passenger business, thanks to expanded flight capacity, particularly to China, and robust demand for business and leisure travel to the Americas and Europe. Looking ahead, Korean Air plans to enhance profitability by increasing flight frequencies and expanding charter operations during the upcoming peak summer travel months.