Korean Airlines (003490) Q4 2025 earnings summary

Executive summary

• Revenue for 4Q 2025 is estimated at KRW 4.55 trillion, up 13% year-over-year, with operating income at KRW 0.41 trillion and net income at KRW 0.28 trillion, reflecting growth in both passenger and cargo segments.

• Asset base expanded by 14.5% to KRW 38.5 trillion, driven by new aircraft introductions and increased passenger ticket sales, while maintaining a reasonable debt-to-equity ratio.

Financial highlights

• Revenue increased by KRW 522 billion year-over-year, with passenger revenue up KRW 217.1 billion and cargo revenue up KRW 35.1 billion.

• Operating expenses rose by KRW 544.2 billion, mainly due to higher fuel, labor, and manufacturing costs.

• Net income improved by KRW 32.4 billion year-over-year, despite a slight decrease in operating margin from 10.8% to 9.1%.

• Cash equivalents decreased by 21.1% to KRW 3.49 trillion, while net debt increased by 50.9% to KRW 12.53 trillion.

Outlook and guidance

• Passenger demand expected to rise during the Lunar New Year and Easter, with a focus on high-yield inbound sales and flexible response to external uncertainties.

• Cargo market outlook for 2026 remains uncertain due to global protectionism and economic slowdown, but stable customer base and high-value cargo targeted.