Korean Air Q2 profit falls 34% on higher fuel costs, revenue hits record high
Korean Air Q2 profit falls 34% on higher fuel costs, revenue hits record high HONG KONG, July 13 (Reuters) - Korean Air Lines 003490.KS reported a 34% drop in second-quarter operating profit on Monday, as surging fuel costs weighed on earnings despite the carrier posting record revenue for the quarter.
The South Korean flag carrier said operating profit for the April-June period fell to 261.8 billion won ($174.52 million) from 398.9 billion won a year earlier.
Revenue climbed to a 5.02 trillion won, up 26% year-on-year, a record for the second quarter.
Passenger revenue rose about 19% year-on-year to 2.85 trillion won in the second quarter.
Stronger inbound tourism and rising transit demand, partly fuelled by geopolitical disruptions in the Middle East, helped offset a softening in outbound travel from South Korea amid higher oil prices.
Cargo revenue surged about 46% year-on-year to 1.54 trillion won, driven by robust demand tied to global artificial intelligence investments and strong exports of South Korean beauty products.
Korean Air said it expected passenger demand to rebound in the third quarter, buoyed by peak summer travel and lower fuel surcharges, while targeting high-growth cargo segments, particularly AI-related industries, to sustain revenue momentum.
($1 = 1,500.1000 won)
(Reporting by Julie Zhu; Editing by Jamie Freed)
((julie.zhu1@thomsonreuters.com;))
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