Korean Airlines (003490) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 14.1% year-over-year to KRW 4,515.1 billion, with operating profit up 47.3% to KRW 516.9 billion, driven by strong international passenger and cargo demand, especially on international routes and from high-growth industries, despite geopolitical risks and fuel price volatility.

• Expanded fleet and introduced new aircraft, supporting increased capacity and operational flexibility.

• Passenger business saw strong international demand, especially from Middle East route shifts, while cargo benefited from e-commerce and AI-related shipments.

• The company maintained flexible route management and risk controls to defend profitability amid external uncertainties.

Financial highlights

• Consolidated Q1 2026 revenue: KRW 6,658.1 billion; operating profit: KRW 517.4 billion; net profit: KRW 33.7 billion.

• Revenue rose to KRW 4,515.1b in 1Q 2026, up 14.1% year-over-year.

• Operating income increased to KRW 516.9b, with an operating margin of 11.4%.

• Cash equivalents grew by 25% to KRW 4,364.8b.

• Basic EPS: KRW 330 (common shares); cash and cash equivalents at period end: KRW 3,101.7 billion.

Outlook and guidance

• Focus on defending profitability amid rising fuel prices and volatile exchange rates.

• Q2 2026 expected to face continued high fuel costs and geopolitical risks, but demand transfer from other carriers and flexible supply management are anticipated to support profitability.

• Proactive strategies to capture inbound and transit demand during peak travel seasons.

• Cargo business to flexibly respond to geopolitical risks and seasonal demand, with continued investment in logistics infrastructure.