Korean Air's Q2 profit falls 12%, revenue hits new quarterly high

Industry

Korean Air's Q2 profit falls 12%, revenue hits new quarterly high

Published: 07 Aug. 2024, 18:14 Updated: 07 Aug. 2024, 18:22

SARAH CHEA
chea.sarah@joongang.co.kr

A carrier operated by Korean Airlines [KOREAN AIR]

Korean Air's operating profit fell 12 percent to 413.4 billion won ($300 million) in the second quarter impacted by rising fuel and labor costs, the Korean flagship carrier said Wednesday.

It also missed the consensus estimates of 468 billion won compiled by market tracker FnGuide.

Revenue, however, hit a record quarterly high of 4.02 trillion won, up 14 percent on year. It's first time the company's quarterly revenue surpassed the 4 trillion won mark.

The figure fell short of consensus of 4.3 trillion won.

Net profit for the three months ending in June reached 349 billion won, compared to 371.5 billion won during the same period last year.

The company blamed its underperforming quarterly performance to "increased fuel and labor costs," and other "expenses associated with higher business volume."

The airline said sales from the passenger business rose by 10 percent on year thanks to the airline's expanded capacity across its networks, including China, and a strong business and leisure demand to the Americas and Europe.

The company said it aims to maximize profit by increasing flight frequencies and expanding charter operations during the peak summer travel months in the third quarter.

Korean Air shares closed at 20,350 won on Wednesday, up 1.5 percent from the previous trading session.

BY SARAH CHEA, YONHAP [chea.sarah@joongang.co.kr]