Airlines enjoy earnings boosts from expanded Chinese e-commerce cargo

Korean Air and Asiana Airlines are enjoying rising earnings, fueled by increased cargo volume driven by the success of Chinese e-commerce firms in the region, according to data and industry officials, Monday. Data from the Ministry of Land, Infrastructure and Transport showed that the quantity of goods transported by a group of 11 local carriers on international flights reached 2.33m tons in the first 10 months of this year, up 12.4% compared to 2023. This helped the carriers report solid earnings growth in the third quarter. According to a regulatory filing by Korean Air, the nation’s flag carrier chalked up robust cargo sales growth of 22% between July and September from a year earlier. Buoyed by the cargo business growth, the airline achieved record quarterly sales of 4.24t won ($3.02b) in the third quarter, up 10% from a year ago. Industry officials attributed the cargo growth to the increased access Korean shoppers have to global products through Chinese e-commerce platforms like AliExpress and Temu. “No one can dispute that it has become much easier for local customers to purchase overseas goods via such platforms at super-cheap prices,” an aviation industry official said.<br/>