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Korean Air misses estimates, vows to add more seats

Published: 07 Feb. 2025, 18:42 Updated: 08 Feb. 2025, 14:06

SARAH CHEA
[email protected]

Korean Air and Asiana Airlines' planes are stationed at Incheon International Airport. [NEWS1]

Korean Air posted annual earnings that missed estimates on a rocky geopolitical climate but said it expects to reverse the trend with expanded seats and flights in the coming year.

Operating profit at the country's flagship carrier rose 22.5 percent to 1.95 trillion won ($1.32 billion) falling short of the average analyst prediction of 2.14 trillion won compiled by FnGuide. Revenue hit a record high of 16.12 trillion won, up 10.6 percent on year, also missing the analyst estimates of 18 trillion won.

Net profit rose 36.8 percent to 1.3 trillion won in line with estimates of 1.37 trillion won.

The annual results disappointed despite a fourth-quarter blowout, when operating profit jumped 159 percent on year to 476.5 billion won. Revenue rose 1 percent to 4 trillion won while the company swung to net profit of 283.3 billion won during the September-to-December period.

The operator still, however, struggled with the impact of off-season periods. Sales of freight operations slipped 3 percent to 2.4 trillion won in the fourth quarter while those of the cargo businesses inched up 9 percent thanks to higher demand from Chinese e-commerce companies.

Korean Air said it aims to maximize profit in passenger operations by maximizing seat capacity in popular travel routes and expanding charter flights.

“In 2025, Korean Air anticipates uncertainty in the business environment due to shifts in the global political landscape,” the airline said in a statement. “However, the airline remains committed to strengthening its competitiveness as a leading global carrier by strategically preparing for its integration with Asiana Airlines.”

Korean Air acquired 63.9 percent of compatriot Asiana on Dec. 12 to end its long-anticipated four-year merger plan. Asiana will operate as a Korean Air subsidiary for two years, and the two will be fully integrated in 2026, giving birth to one of the top 10 megacarriers in the world.

BY SARAH CHEA [[email protected]]