In announcing its annual accounts, Korean Air stated that it anticipates demand to continue to increase even if customers are facing difficult financial times.
With revenues increasing consistently throughout the year, the South Korean carrier ended 2022 with a net profit of KRW2.88 trillion ($2.3 billion). By the end of 2022, Korean Air had earned KRW13.4 trillion ($10.9 billion), and it was still growing its network as borders in Asia and Oceania were reopened.
As a result of the slowing global economy, KAL’s cargo business has experienced a downturn, forcing the company to improve its profit management by adjusting to declining yields. However, Korean Air sees a chance in China, where the end of the zero-COVID policy might lead to a return to normalcy in the nation’s manufacturing.
Despite worries about high interest rates and the economic downturn, passenger demand is expected to rise as we enter the endemic period, so passenger services continue to be a bright spot for the carrier based in Seoul, South Korea.
The company singled out South East Asia, the Americas/Europe, and Japan as some of the markets with strong or rising demand. Because there are still strict restrictions in place, travel to/from China is still not fully recovering, according to KAL.
A second South Korean carrier, Asiana Airlines, is also a target for the airline’s acquisition. Korean Air expects several regulators to ultimately approve the merger throughout the year, according to a letter to employees that CEO Walter Cho wrote to the company’s staff at the beginning of January 2023.
Operations would start for the new business in 2024 under the Korean Air branding. A single Boeing 737 MAX-8 and one Airbus A321neo were added to Korean Air’s fleet in 2022, which also saw the retirement of one Boeing 747-8I, two Boeing 777, and two Boeing 737s.
It also started turning its 10 Airbus A380s, which it currently owns, back on to accommodate passenger demand. A further five remain parked at Incheon International Airport (ICN), and the most recent double-decker to be reactivated was registered HL7622 and entered service again in November 2022.
