Korean Air announced on Monday (July 13) that its separate revenue for the second quarter of this year reached 5.0199 trillion won, a 25.9% increase from the same period last year (3.9859 trillion won).

This marks the highest revenue ever recorded for a second quarter.

Operating profit for the second quarter fell by 34.4% to 261.8 billion won, largely due to a significant increase in fuel costs.

Driven by rising oil prices amid the Middle East conflict and a higher won-dollar exchange rate, Korean Air's fuel costs in the second quarter surged by approximately 1 trillion won (110.9%) to 1.9991 trillion won, compared to 947.8 billion won in the same period last year.

Korean Air recorded a net loss of 97.3 billion won in the second quarter, shifting to a deficit.

Revenue from the passenger business in the second quarter stood at 2.8479 trillion won, an increase of 451.4 billion won from the same period last year.

While passenger demand from South Korea softened due to the burden of fuel surcharges caused by rising oil prices, the airline benefited from reduced supply by Middle Eastern carriers and an increase in inbound tourism from foreign visitors.

Revenue from the cargo business in the second quarter was 1.5419 trillion won, up 486.5 billion won from the same period last year.

As demand for air freight, including semiconductors, rose due to expanded global investment in artificial intelligence (AI) and strong K-beauty exports, freight rates climbed to their highest level since the COVID-19 pandemic.

Korean Air explained that it secured stable profits by attracting high-value cargo and operating routes flexibly, including the use of charter flights.

For the third quarter, Korean Air projected that passenger demand would rebound due to the summer peak season and a recovery in travel sentiment following a potential reduction in fuel surcharges after Middle East peace negotiations.

The airline expects strong demand in both directions, with inbound demand from overseas continuing and outbound demand from South Korea recovering.

Regarding the cargo business, the company stated it plans to maintain a stable profit base by actively attracting growth-oriented demand, particularly in AI-related industries, and by flexibly adjusting supply in response to changes in the external environment to maximize revenue and profitability.

(Photo: Yonhap News)