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Korean Air posts record revenue, robust growth in 2023

Korean Air

Achieving a historic high, Korean Air reports record revenue of USD 11.3 billion in 2023, with strong passenger and cargo sector performance despite global economic challenges.

SEOUL, KOREA – Korean Air achieved a record-high revenue of KRW 14.5751 trillion (USD 11.3 billion) in 2023, with an operating profit of KRW 1.5869 trillion (USD 1.23 billion). The airline also achieved a record-high quarterly revenue of KRW 3.9801 trillion (USD 3.09 billion) in its fourth fiscal quarter.

For the full year of 2023, Korean Air reported a higher operating profit compared to 2019. The airline’s 2023 operating profit margin was increased year-on-year by 10.9%, a higher rate than the industry average. The fourth quarter’s year-on-year decrease in operating profit is a result of an increase in staff wages that included incentives for achieving annual performance and safety performance targets.

Annual passenger business revenue increased compared to 2019, driven by strong travel demand and higher premium class demand despite network capacity only recovering to 80 percent of pre-pandemic levels. In the cargo sector, while revenue decreased due to the rebound of passenger belly cargo capacity and the normalization of ocean freight, a higher level of profitability was maintained compared to 2019.

Korean Air anticipates passenger demand and capacity to fully recover in Q1. Long-haul demand is expected to remain robust, and the airline forecasts the recovery of tourism demand during the peak winter season to boost revenue. Korean Air will maximize revenue by resuming routes and increasing capacity to popular tourist destinations in Southeast Asia and Japan.

In Q1, rebound of air cargo demand for traditional items, such as semiconductors, automobiles and displays, remains uncertain due to the weakened global economy. The airline aims to respond flexibly to the ongoing robust demand in e-commerce that has carried over from the end of last year, and will respond to supply chain uncertainties arising from global geopolitical risks.

Q4 and Full Year 2023 Results (Non-consolidated)

* Unit: KRW billion (USD million)

KRW/USD exchange rate: 1,289.4

Q4

Full Year

2023

2022

Remarks

2023

2022

Remarks

Revenue

3,980.1

(3,086.8)

3,606.8

(2,797.3)

+373.3

(+10.3% YoY)

14,575.1

(11,303.8)

13,412.7

(10,402.3)

+1,162.4

(+8.7% YoY)

Operating Profit

183.6
(142.4)

520.1

(403.4)

-336.5

(-64.7% YoY)

1,586.9

(1,230.7)

2,883.6

(2,236.4)

-1,296.7

(-45% YoY)

Net Income

-234.6

(-182)

354

(274.6)

-588.6

916.8

(711)

1,779.6

(1,380.2)

-862.8

George Diamantopoulos
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George, in his capacity as an intern, diligently oversees the flow of news, assists in the publication of content, and delves into the strategies of social media distribution. He is currently pursuing his studies in Business Administration at the Athens University of Economics and Business.

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