Korean Air Swings to Net Loss as Cargo Revenue Slumps

Korean Air (003490.KS) reported a second-quarter net loss of 97.3 billion Korean won, swinging from net income of 395.9 billion won a year earlier, the airline said. Operating profit fell to 261 billion won, missing the 307.9 billion won average estimate from analysts compiled by Bloomberg.

Revenue dropped 8% to 3.6 trillion won. The cargo business, which powered profits during the pandemic, saw revenue slide 17% to 1.1 trillion won as shipping rates normalized and global trade volumes softened. Passenger revenue rose 12% to 2.4 trillion won on stronger travel demand. The gain was not enough to offset the cargo decline, and a weaker won inflated dollar-denominated costs.

Fuel costs fell 14% to 1.1 trillion won. The carrier's operating margin narrowed to 7.2% from 11.5% a year ago.

Korean Air is awaiting regulatory clearance for its proposed merger with Asiana Airlines. The deal, which would create one of Asia's largest carriers, has been under review by competition authorities in multiple jurisdictions.