Korean Air reports record annual revenue, flags uncertainties from global politics

Korean Air Lines Co

07/02/2025 08:53

SEOUL, Feb 7 (Reuters) - 
    Korean Air  003490.KS  anticipates uncertainties in the
business environment this year due to shifts in the global
political landscape, the airline said on Friday after reporting
a record revenue for its 2024 financial year.
  
    South Korea's largest airline completed a $1.3 billion
acquisition of rival Asiana Airlines  020560.KS  in December to
become one of Asia's biggest carriers.
    It reported a record annual revenue of KRW 16 trillion ($11
billion), up 10.6% on last year, and a 22.5% increase in
operating profit at KRW 2 trillion.
    Korean Air is also one of Asia's largest cargo carriers,
which has benefited in recent years from rising volumes of
e-commerce out of China. 
    In the fourth quarter of 2024, cargo revenue was 9% higher
than the same period a year earlier, while passenger revenue
declined 3%, the airline said. 
    This year the airline anticipates further recovery in the
China passenger market, which has lagged other markets in
returning to travel since the pandemic.
    This week, the U.S. imposed 10% tariffs on goods from China
and also scrapped a customs duty exemption on low-value packages
from China, which e-commerce firms had taken advantage of to
ship increasing amounts of low-value duty-free packages. 
    "In 2025, Korean Air anticipates uncertainties in the
business environment due to shifts in the global political
landscape. However, the airline remains committed to
strengthening its competitiveness as a leading global carrier by
strategically preparing for its integration with Asiana
Airlines," the company said. 
     Korean Air intends to run Asiana as a subsidiary for up to
two years before integrating into one airline under the Korean
Air name but with new branding.
    
($1 = 1,446.7200 won)

 (Reporting by Lisa Barrington; Editing by Eileen Soreng)
 ((lisa.barrington@thomsonreuters.com;))