Seoul:Korean Air Co., South Korea's leading airline, announced a significant increase in its net profit for the third quarter, attributing the surge to strong demand in both passenger and cargo sectors and a more favorable exchange rate for the Korean won.
According to Yonhap News Agency, the airline's net profit for the July-September period reached 929.7 billion won (approximately US$692.2 million), a substantial rise from 91.9 billion won recorded in the same period the previous year. This increase was reported on a nonconsolidated basis as part of the airline's preliminary earnings report.
Korean Air's operating profit also saw an upward trend, rising 12 percent year-on-year to 421.2 billion won, while sales reached an unprecedented quarterly high of 5.04 trillion won, marking a 26 percent increase.
The growth in passenger revenue, which climbed by 496.3 billion won to 2.91 trillion won, was fueled by a strong influx of travelers to South Korea. Meanwhile, cargo revenue increased by 365.6 billion won to an estimated 1.43 trillion won, driven by the healthy demand for shipping high-value items such as semiconductors and products related to artificial intelligence.
Despite the positive results, Korean Air noted potential challenges ahead, specifically pointing to possible pressure on its passenger business in the fourth quarter due to rising fuel costs amidst ongoing geopolitical tensions in the Middle East.