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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Korean Air reported record-high annual revenue in 2025, although its operating profit declined sharply amid rising costs driven by a weak won.
According to a regulatory filing on January 15, Korean Air posted revenue of KRW 16.50 trillion and operating profit of KRW 1.54 trillion on a standalone basis for 2025.
Revenue rose 2% year on year to an all-time high, while operating profit fell 19% compared with the previous year. The decline was attributed to higher operating expenses, including fuel costs, labor expenses, and depreciation, exacerbated by a prolonged weak currency environment.
In the fourth quarter of 2025, revenue totaled KRW 4.55 trillion, up 13% from a year earlier. Operating profit for the quarter declined 5% year on year to KRW 413.1 billion.
Fourth-quarter passenger revenue increased 9% year on year to KRW 2.59 trillion. While demand on trans-Pacific routes remained somewhat sluggish due to tighter entry regulations and intensified competition on U.S. West Coast routes, overall revenue and profitability improved as short-haul demand—particularly to Japan and China—picked up during the extended Chuseok holiday period in October.
Cargo revenue in the fourth quarter rose 3% year on year to KRW 1.23 trillion. Korean Air cited easing external uncertainties following U.S.-China tariff truce negotiations, steady inflows of e-commerce demand, year-end consumption growth, and expanded fixed-volume contracts as factors supporting stable earnings.
Looking ahead, Korean Air said it plans to expand overseas-originated sales in the first quarter of this year in response to continued won weakness and softer outbound demand from Korea. The airline also intends to increase capacity during the Lunar New Year holiday period in February to enhance profitability. Its cargo business will be managed flexibly in line with market conditions, with a focus on portfolio diversification.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
