Korean Air Lines stays in black, but net profit falls on year

Korean Air carrier [KOREAN AIR LINES]

Korean Air Lines’ second quarter net profit fell 20 percent on year to 130 billion won ($112 million) on sales that rose 16 percent.

The full-service carrier on Friday reported 130 billion won in net profit on 1.95 trillion won in revenue.

Its operating profit was up 31 percent to 196.9 billion won.

The airline said that it managed to stay in the black for a fifth consecutive quarter based on its “effort to boost cargo operations and reduce costs, despite the drop in passenger demand caused by the Covid-19 pandemic.”

The cargo business raised 1.51 trillion won in revenue, a historic high for the carrier.

Addressing its growth, the airline cited an increase in companies’ restocking demands in preparation for the economic recovery and rise in emergency supply shipments due to a capacity shortage in the shipping industry.

It added that it is working to “secure demand by operating international charter flights and domestic routes to and from Jeju.”

It currently operates 35 international routes for passenger flights, compared to 110 routes right before the virus breakout early last year.

Korean Air Lines admitted the continued uncertainty will likely remain in the second half due to the virus, but added that cargo demand will stay strong on the recovering economy and companies’ need to restock goods.

BY JIN MIN-JI [jin.minji@joongang.co.kr]