Korean Airlines (003490) Q3 2024 earnings summary

Executive summary

• Revenue for 3Q 2024 is estimated at KRW 4.24 trillion, up 9.8% year-over-year, with operating income rising 18.9% to KRW 618.6 billion.

• Revenue for the nine months ended September 2024 increased 14.1% year-over-year to ₩12.87 trillion, with operating profit up ₩64.8 billion to ₩1.47 trillion, driven by strong passenger and resilient cargo demand despite global uncertainties.

• Net income is projected to decline 34.8% year-over-year to KRW 276.6 billion, mainly due to higher non-operating losses.

• Passenger and cargo businesses both showed growth, with strong summer demand and robust e-commerce cargo flows.

• Aerospace segment saw increased sales from new contracts, including a ₩1.2 trillion extension with Boeing, and continued investment in unmanned and urban air mobility technologies.

Financial highlights

• Consolidated revenue for the nine months ended September 2024: ₩13.37 trillion (up from ₩11.72 trillion YoY).

• Operating profit: ₩1.65 trillion (down from ₩1.79 trillion YoY); net profit: ₩1.08 trillion (down from ₩1.13 trillion YoY).

• Total assets are expected to increase by 6.1% to KRW 30,996.0 billion as of September 30, 2024.

• Total equity rises 7.2% to KRW 10,375.8 billion, while financial debt increases 7.7% to KRW 11,203.9 billion.

• Cash and cash equivalents at period end: ₩677.6 billion.

Outlook and guidance

• Passenger demand expected to remain strong during holiday periods and in Q4, especially on leisure routes and with new visa waivers for China.

• Cargo outlook remains positive for e-commerce and seasonal demand, but faces volatility from global logistics disruptions, tariff adjustments, and geopolitical risks.

• Continued investment in next-generation aircraft, digital transformation, and expansion of aerospace and unmanned systems.