Korean Airlines (003490) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for H1 2025 reached KRW 12.7 trillion, with operating income of KRW 801.1 billion and net income of KRW 907.1 billion, reflecting stable performance post-Asiana acquisition.

• Revenue for 2Q 2025 (non-consolidated) was KRW 3.99 trillion, with operating income of KRW 0.39 trillion and net income of KRW 395.9 billion, maintaining stable profitability despite a slight revenue decline year-over-year.

• Passenger and cargo demand continued to recover, with international passenger revenue up and cargo revenue stable despite global uncertainties.

• Integration of Asiana Airlines and related subsidiaries expanded the group’s scale and market share.

• Passenger business maintained yield and solid demand on key international routes, while cargo business faced demand volatility due to tariffs and e-commerce slowdown.

Financial highlights

• H1 2025 consolidated revenue: KRW 12,702.6 billion (+1.2% YoY); operating income: KRW 801.1 billion; net income attributable to owners: KRW 769.6 billion.

• Non-consolidated total assets increased 4.0% to KRW 34.91 trillion, with cash equivalents at KRW 4.11 trillion; consolidated cash and cash equivalents at KRW 1.55 trillion.

• Net debt rose 15.8% to KRW 9.62 trillion (non-consolidated) and 9.4% to KRW 13.94 trillion (consolidated).

• Asiana Airlines contributed KRW 3.96 trillion in revenue and KRW 48.5 billion in operating profit.

• Segment breakdown: Air transport 95.7% of revenue, aerospace 2.3%, hotel 0.7%, other 1.3%.

Outlook and guidance

• Passenger demand expected to remain robust, especially on international routes, with capacity to increase year-over-year and strong booking momentum.

• Cargo business anticipates continued volatility due to US tariffs and geopolitical risks, with a focus on flexible planning, portfolio diversification, and new routes.

• Ongoing fleet modernization and expansion of in-flight Wi-Fi and digital services.

• Expansion of routes and charter flights planned to maximize revenue in high-demand markets.