Korean Air posts record operating profit in 2021 on freight boom

Korean Air said on Thursday it had record Q4 and annual operating profits in 2021, fuelled by strong cargo demand and freight rates, even though the passenger market stays subdued. The airline more than quadrupled operating profit to 704.4b won ($585.22m) in Q4 over the prior year as peak demand in the year-end holiday season and limits on passenger jet belly space pushed up freight rates. “The airline was able to respond proactively to the global supply chain disruptions and operational restrictions caused by the Omicron variant, and provide clients with reliable services,” Korean Air said. Several large Asian airlines, including Korean Air, China Airlines, Cathay Pacific and Singapore Airlines, have relied heavily on cargo revenue during the pandemic as strict border controls have limited passenger travel. This week, the IATA said international air cargo demand in Dec. 2021 was 9.4% above the level in 2019, but capacity was 6.5% lower, supporting higher freight rates. On Thursday, China Airlines said it had posted record air freight revenues of T$15.4b ($554.08m) in December.<br/>