Korean Air Estimates Integration Costs with Asiana to Reach Up to 1 Trillion Won

Korean Air has announced that the costs associated with its integration with Asiana Airlines are expected to reach up to 1 trillion won.
During an investor relations (IR) session held today (June 19) at Korea Investment & Securities in Yeongdeungpo-gu, Seoul, Korean Air stated that an analysis of its Post-Merger Integration (PMI) strategy projects total integration costs to be between 900 billion and 1 trillion won.
The company explained that the annual synergy effect from the merger is estimated at 300 billion won, which would allow the integration costs to be offset as early as the end of 2028.
Park Hee-don, Executive Vice President and Head of the Management Strategy Division at Korean Air, said, "We anticipate that the synergy effects may be slightly higher than the initial PMI analysis results," adding, "We expect to fully offset the integration costs between the end of 2028 and early 2029."
Korean Air plans to launch the integrated airline by December 17 of this year, aiming to become a top-10 global carrier with 23 trillion won in revenue and a fleet of 230 aircraft.
Regarding the conflict over pilot rank structures between Korean Air and Asiana Airlines, Vice Chairman Woo Kee-hong stated, "We are well aware of the concerns raised by the pilots and are continuing to communicate with them."
On the plan for integrating mileage programs, he responded, "We hope to finalize it without delay, ideally by the time the shareholders' meeting is held in August."
(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.