Korean Air Reports 67% Q3 Net Profit Drop Amid Revenue Declines, Rising Costs

Korean Air reported a significant decline in its third-quarter financial results for 2025, with operating profit dropping 39% year-on-year to 376.3 billion won and net income falling 67% to 91.8 billion won. The revenue decrease was primarily driven by a 6% fall in sales to 4 trillion won, impacted by the postponement of the Chuseok holiday from September to October and stricter U.S. entry regulations affecting passenger demand. Cargo revenue also declined by approximately 4.7%, affected by global air cargo market slowdown and increased risks from U.S.-China trade tariffs. Despite lower fuel costs, overall operating expenses increased due to higher depreciation, maintenance, and operational costs, as well as foreign currency debt burdens amid a rising exchange rate. Korean Air anticipates a rebound in the fourth quarter, supported by the long Chuseok holiday and year-end peak travel season, with plans to maximize profitability through flexible capacity management, particularly targeting popular winter destinations and high-value cargo. The airline continues to navigate challenges from competitive fare environments, trade tensions, and fluctuating demand across passenger and cargo sectors.