Korean Air Q2 Profit Falls 34% on Higher Fuel Costs, Revenue Hits Record High
Cargo demand tied to artificial intelligence and Korean beauty exports helped lift sales, while operating profit fell as fuel costs rose, the carrier said.
- Korean Air Lines reported record second-quarter revenue of $3.26 billion, up 26% year-on-year, though operating profit fell 34% to 261.8 billion won as surging fuel costs weighed on earnings.
- Surging fuel costs amid Middle East geopolitical tensions drove the profit decline, offsetting record-high sales figures posted for the April-June period as oil prices climbed.
- Passenger revenue reached $1.91 billion, up 11.88%, while cargo revenue surged 46.1% to $1.03 billion, driven by robust demand in AI-related industries and South Korean beauty exports.
- On the Seoul bourse Monday, Korean Air shares fell 3.36% while the benchmark KOSPI index plummeted 8.95%, reflecting broader market volatility tied to the earnings report.
- Expectations for the third quarter include a passenger demand rebound driven by peak summer travel and lower fuel surcharges, while Korean Air targets high-growth AI-related cargo sectors.
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(Seoul = Yonhap News) Reporter Kim Yu-hyang = Hana Securities raised its target price for Korean Air [003490] from the previous 38,000... on the 14th, stating that the company's operating profit for the second quarter of this year exceeded estimates.
Korean Air Q2 profit falls 34% on higher fuel costs, revenue hits record high
Korean Air announced on the 13th that its operating profit on a separate basis for the second quarter of this year was provisionally tallied at 261.8 billion won, a 34% decrease compared to the same period last year. Revenue for the same period was recorded at 5.0199 trillion won, a 26% increase. Net profit turned into a loss of 97.3 billion won, up from a profit of 395.9 billion won in the same period last year. By business segment, Korean Air'…
[Digital Daily Reporter Yoon Seo-yeon] Although Korean Air recorded its highest-ever revenue in the second quarter of this year, it could not avoid the impact of rising international oil prices driven by instability in the Middle East. As fuel costs more than doubled in a year due to rising oil prices, operating profit reportedly decreased by over 30%. Korean Air plans to recover profitability in the second half of this year through synergies fr…
Korean Air reports 26 pc revenue growth to record USD 3.36 trillion in Q2
Korean Air has reported a mixed performance for the second quarter of 2026, with revenue rising 26 pc year-on-year to a record KRW 5.02 trillion or USD 3.36 trillion despite a 34 pc decline in operating profit to KRW 261.8 billion, as higher fuel costs weighed on earnings. Strong growth in both passenger and cargo businesses helped offset softer outbound travel demand. In a press statement, Korean Air says its operating profit for the April-June…
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