Korean Air shifts to Q4 net loss on operating costs

Korean Air said Tuesday it had shifted to a net loss in Q4 2023 from a year earlier due to increased operating costs. Korean Air swung to an estimated net loss of 234.59b won ($176m) in the three months ended on Dec. 31 from a net profit of 353.98b won a year earlier, the company said. Operating profit likely plunged 65% to 183.61b won in the October-December period from 520.08b won a year ago. Sales rose 10% to 3.98t won in Q4 from 3.61t won a year earlier. "The profit decline was mainly due to increased staff wages that include incentives for achieving annual performance and safety performance targets," the statement said. The company expected passenger demand to fully recover in Q1 of this year but air cargo demand for traditional items, such as semiconductors and displays, will remain uncertain due to a slowdown in the global economy. "We will respond flexibly to the ongoing robust demand in e-commerce that has carried over from the end of last year and actively respond to supply chain uncertainties arising from global geopolitical risks," the company said.<br/>