Korean Air has fourth quarter revenue of 4.5 trillion Korean won ($3.17bn) in the fourth quarter of 2025, increasing 552bn won ($336 million) compared to the same period a year prior.
Operating profit declined 5% to 413.1bn won ($287.9 million) in the quarter, due to increased operating costs and weakening local currency. Despite this, the airline still reported a 13% increase in net income, totalling 284bn won ($197.9 million). Increased sales had helped offset the declining operating costs.
For the first quarter of 2026, the airline said it plans to “maximise passenger revenue" by boosting overseas market sales to “offset the weak Korean won and softening outbound demand from Korea”.
The airline said it will also “flexibly expand” its capacity to capture peak demand periods such as Lunar New Year holiday in February.
The airline's passenger revenues were up 217.1bn won ($147.8 million) to 2.6 trillion won ($1.8bn) during the quarter.
“While demand on North American routes remained similar due to tighter entry regulations and intensifying competition on West Coast routes, the overall network achieved improved revenue and profitability,” Korean Air said. “This growth was driven by a surge in short-haul demand, particularly for Japan and China, during the Chuseok holiday [Korean Thanksgiving] in October.”
Cargo revenues in the quarter was up 35.1bn won ($23.9 million) to 1.2 trillion won ($816.9 million).
“Earnings remained stable, supported by steady e-commerce inflows, year-end seasonal volume, and reduced market volatility following the US-China tariff negotiations,” the airline said.
For the first quarter of 2026, the airline said it plans to maximise profitability through portfolio diversification and flexible operation of freighter capacity “amid uncertainties” in the cargo market.
Full-year 2025 revenues were up 2% to 16.5 trillion ($11.5bn), while operating profits slumped 19% to 1.5 trillion won ($1.1bn).
Net income dropped 21% in 2025, down to 965bn won ($672.5 million) for the year.
For full-year 2026, Korean Air said expects “a more competitive landscape” as global passenger capacity continues to recovery and a more volatile geopolitical environment. The airline said it will be agile in its response to these external factors.