Korean Air's first fiscal quarter revenue was KRW 3.1959 trillion (US$2.4512 billion), a 14 percent year-on-year rise due to the gradual recovery of travel demand and the ongoing profitability of its cargo operations. However, due to rising fuel prices and increased operational costs as a result of expanded aircraft operations, the airline's operating profit fell by 47 percent year on year to KRW 415 billion (US$318.3 million).
The airline's first-quarter passenger revenue increased 394 percent year on year to KRW 1.7777 trillion. The airline's passenger business revenue has nearly recovered to pre-COVID levels in Q1 2019 and is on its way to full normalisation, thanks to strong travel demand that has been fueling the steady rebound in capacity and passenger numbers. In the first quarter, freight revenue plummeted by 51% year on year to KRW 1.485 trillion. The worldwide economic slump and a drop in freight rates as passenger aircraft belly cargo capacity increased have both had an impact on the firm.
Korean Air anticipates a rapid recovery in global passenger demand in Q2, owing to the removal of travel restrictions around the world. By growing capacity and responding flexibly to demand, the airline will continue to normalise its passenger business. The airline anticipates lower air freight demand in Q2 2023 as a result of the global economic slowdown and market concerns. Korean Air intends to actively monitor the market and secure new freight demand in order to broaden its revenue base.
The airline also hopes to increase sales prospects by leveraging flexible passenger aircraft belly cargo capacity on resumed routes. Korean Air is a founding member of the SkyTeam airline alliance and has evolved into one of the leading transpacific carriers through its joint venture with Delta Air Lines.