South Korea's Air is hoping to see “continuous growth” in its passenger business in the near future, despite recent “business environment uncertainty.”
SkyTeam operators say outbound demand from South Korea to Japan, Southeast Asia and China is expected to perform strongly in the April-June quarter.
“To maximize profitability, the airline will explore new destinations and expand its charter flight operations.”
South Korean aviation comments come as they report first quarter revenue amid global economic uncertainty resulting from the Trump administration's trade war.
For the three months ended March 31st, the airline, which recently announced its new corporate identity, improved its operating revenue to 3% ($2.75 billion) from the previous year as passenger and freight demand grew stronger.
“Despite increasing market capacity and increasing competition with various domestic and international uncertainties, travel demand during the month's New Year and March holidays supported both revenue and transportation growth,” the airline said.
Despite the “challenges” surrounding Trump's tariff policy, freight revenues rose 6%, while passenger revenues rose 4%.
Nevertheless, the airline saw its quarterly operating profit fell 19% to about 351 billion, while its net profit fell 44% to 193 billion W.
This comes amidst the increased operating costs associated with depreciation and maintenance of newly introduced aircraft. Korean undertook higher unit costs as a result of currency fluctuations.
However, according to South Korea's Air, new aircraft, including the Boeing 787-10 and A350, were important in a broader long-term strategy “to increase capacity and improve service quality.”
“By deploying the latest aircraft, the airline aims to grow its global network, enhance the passenger experience and enhance the overall profitability.”
