Korean Air Lines wallops expectations as pax numbers jump

Korean Air Lines planes at Incheon International Airport [NEWS1]

Korean Air Lines beat expectations in the third quarter with a net profit of 431.4 billion won ($302.6 million), jumping 222 percent on year due to a strong recovery in passenger traffic.

The figure beat analyst expectations of a 232-billion-won net profit compiled on FnGuide.

The carrier reported revenue of 3.67 trillion won, up 65 percent on year. The figure slightly beat analyst expectations of a 3.66-trillion-won revenue.

Sales from passenger flights in the third quarter jumped 338 percent on year to 1.45 trillion won as various countries ease travel restrictions and travelers increase.

Korea Air Lines says prospects for its passenger flight business is very positive, with travel demand expected to continue rising, especially ahead of end-of-year holidays. There has been more travelers coming from the United States due to the weak won and more travelers to and from Japan due to the country resuming visa-free travel.

The carrier will up frequencies to meet demand, also scheduling non-regular flights if necessary.

Sales from its cargo business rose 12 percent on year to 1.86 trillion won.

The carrier says growth wasn’t as fast as in previous quarters because of rising fuel costs and fewer overseas flight purchases due to inflation. Competition has also been high in the cargo transport business due to more planes flying as travel demand rises.

The carrier expects cargo transport demand to fall in the fourth quarter, but said it will try to sign contracts to deliver goods for the upcoming busy shopping seasons, such as Black Friday and the Christmas holidays.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]