Korean Air posts 20% profit drop in Q1 after fleet expansion

Korean Air recorded nearly a 20% drop in operating profit in the first quarter of the year, due to increased costs related to new aircraft and a weakening Korean won. According to preliminary figures released by the national flag carrier on Sunday, revenue for the January–March period reached 3.95t won ($2.77b) on a nonconsolidated basis, up 3% from the previous year. Despite the record revenue, Korean Air’s operating profit dropped to 350.9b won, down from 436.1b won a year earlier. Net profit fell even more sharply, plunging 44% to 193.2b won. Korean Air cited rising operating expenses as a key factor behind the profit dip, particularly costs tied to new aircraft introduced after pandemic-era delays. Rising unit costs from a weaker won also contributed to the decline, the company explained. “The new aircraft is part of a mid-to-long-term investment strategy aimed at expanding capacity, enhancing service quality and improving profitability through a broader network and upgraded services,” the company said in a statement. The airline has added 16 planes to its fleet since the second quarter of last year. According to the company, revenue from the air travel sector rose 4% on-year to 2.43t won, thanks to holiday rush periods, while cargo revenue climbed 6% to 1.05t won, supported by solid demand for shipments of electronics, auto parts and fresh goods.<br/>