Korean Airlines (003490) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 increased 16.6% year-over-year to ₩7.85 trillion, driven by strong passenger demand on North American routes and resilient e-commerce cargo from China, despite global economic uncertainties and volatile exchange rates.

• Revenue for 2Q 2024 estimated at KRW 4.02 trillion, up 13.8% year-over-year, driven by strong international passenger and cargo demand.

• Operating profit for H1 2024 was ₩849.5 billion, down ₩33.5 billion year-over-year, reflecting higher costs and a challenging cargo market.

• Operating income for 2Q 2024 estimated at KRW 413.4 billion, down 11.7% year-over-year, with an operating margin of 10.3%.

• Net income for H1 2024 attributable to controlling interests was ₩727.4 billion, with basic EPS of ₩1,969.

Financial highlights

• H1 2024 consolidated revenue: ₩8.69 trillion (+16.6% YoY); operating profit: ₩980.5 billion.

• Net income: ₩765.7 billion; EBITDA margin remained robust.

• Total assets as of June 30, 2024 estimated at KRW 30,733.5 billion, up 5.2% from December 31, 2023.

• Total liabilities increased 5.6% to KRW 20,637.9 billion; financial debt rose 7.2% to KRW 11,147.7 billion.

• Total equity increased 4.3% to KRW 10,095.6 billion; cash dividends paid KRW 277.1 billion.

Outlook and guidance

• Passenger demand expected to remain strong in Q3, especially on North American and European routes, with additional capacity planned for high-demand routes.

• Cargo business outlook remains positive, with steady e-commerce demand and expansion of long-term contracts, though volatility persists due to global supply chain disruptions.

• Continued cost management and fleet modernization to support profitability amid high fuel prices and strong USD.