Korean Air Lines Co. reported preliminary revenue that’s almost back at pre-Covid levels on a quarterly basis as the carrier’s strong presence in cargo makes up for still-weak passenger traffic.
The South Korean airline posted revenue of 2.81 trillion won ($2.3 billion) and a record first-quarter operating profit of 788.4 billion won, according to a statement Wednesday. The airline’s cargo operations pulled in revenue of 2.15 trillion won in the period.
The carrier said its passenger business should pick up quickly in 2022. South Korea aims to restore international flights to 50% of pre-pandemic levels by the end of this year, its transportation ministry said last month. The limit on the number of flights arriving per hour at Incheon International Airport will be eased to 20 in May from 10 for the first time in two years, it said.
Korean Air has also been trimming its financial obligations during the pandemic, bringing its debt ratio down to 255% as of the first quarter of 2022, the lowest since 2011.
“Korean Air has secured over 4 trillion won of cash and cashable assets, enabling the airline to flexibly respond to various market uncertainties such as increasing interest rates,” it said.
Korean Air is in the process of acquiring South Korea’s Asiana Airlines Inc.