SEOUL - Korean Air Co., the largest airline in South Korea, announced on Wednesday that its net profit for the first quarter fell 3 percent year-over-year, mainly due to a decrease in its cargo business sales. The company's net profit for the period ending in March was 345.2 billion won ($253.2 million), down from 355.4 billion won in the same period last year.
According to Yonhap News Agency, while net profit decreased, operating profit saw a 5 percent increase to 436.1 billion won, up from 415 billion won a year ago. Total sales rose 20 percent to 3.82 trillion won from 3.19 trillion won the previous year. The airline attributed the decrease in net income to a slight decline in revenue from its cargo operations. Despite challenges in the cargo sector, Korean Air reported that its passenger business profitability improved due to expanded capacity on routes to Southeast Asia and Japan, responding to strong tourism demand. The airline plans to focus on route profitability and cater to the increasing e-commerce demand from China in the coming quarter.