Korean Air adapts in transition to normalcy

Korean Air is apparently consolidating its unrivaled market position here at a time when businesses are trying to transition to a new normal, while still struggling amidst the ongoing COVID-19 pandemic. The country's flag carrier is expected to post its quarterly profit at as high as 550b won ($464.8m) for the October-December period, which in turn will help it to become possibly the only international airline that has stayed in the black for seven straight quarters. Such a performance is underpinned by its robust cargo business, which the company has strategically fostered to defy a steep drop-off in passenger traffic, due to pandemic-induced travel restrictions. While a return to normalcy will undoubtedly give a boost to airlines across the board, Korean Air is anticipated to become a major beneficiary. The process is underway for Korean Air to take over cross-town rival Asiana, meaning that there will be higher chances of domestic travelers choosing Korean Air when going on long-haul flights. "It doesn't matter whether Omicron lasts long or not, because the company will only get better," an industry source said, noting that the latest coronavirus variant dealt a setback to the nascent recovery in international flights. A Korea Investment and Securities analyst speculated that Korean Air's operating profit will reach 550b won in Q4, while another analyst, Yang Ji-hwan from Daeshin Securities, estimated that it will reach 538.3b won.<br/>