Overview
- The carrier reported 91.8 billion won in net profit for July to September, with revenue at about 4.01 trillion won and operating profit at 376.3 billion won, down 67%, 6% and 39% year-on-year respectively.
- Korean Air cited higher maintenance and other fixed costs despite lower fuel prices, with passenger sales pressured by the shift of the Chuseok holiday into October, stricter U.S. entry rules and intensified price competition.
- Cargo revenue declined to 1.07 trillion won as global freight demand softened and U.S. tariff risks weighed on shipments.
- A strong dollar continues to inflate expenses for Korean airlines, with the company estimating about 27 billion won in losses for every 10-won depreciation and analysts warning low-cost carriers face greater strain due to lease exposures.
- The airline expects a partial recovery in the fourth quarter supported by the long October holiday and year-end travel and plans flexible winter route management, while analysts project weaker third-quarter results across LCCs including Jeju Air.