Korean Air, Asiana catch tailwind as cargo delivers profit

South Korea's two leading airlines sharply improved their operating profits last year, results released through Tuesday show, capturing the rising demand for cargo transport to help offset lackluster passenger traffic. Korean Air Lines increased its operating profit sixfold to a record 1.46t won ($1.22b) on an non-consolidated basis in 2021. Revenue rose 18% to 8.75t won. Korean Air's revenue from passenger traffic fell 46% last year due to fallout from the COVID-19 pandemic. But cargo revenue jumped 57%. Cost-saving measures such as employee furloughs helped absorb higher fuel costs. Earnings received a large boost from freight rates that were raised against the backdrop of disrupted global logistics. Korean Air expanded its cargo orders by repurposing terminal functions at its hub, Incheon International Airport. Freight was responsible for 76% of all revenue. The results came as passenger travel picks up for the airline. Mainline flights connecting South Korea with the US showed signs of revival during Q4 2021. The carrier's passenger revenue rose 55% in the period from a year earlier. Passenger demand is expected to recover as countries begin to relax border controls. Asiana Airlines, the country's second-biggest carrier, similarly benefited from higher unit prices for cargo. The company reported Tuesday a 15% gain in revenue to 4.11t won on a non-consolidated basis last year. The company posted an operating profit of 456b won, tallying its first results in the black in four years.<br/>