SEOUL (Reuters) – Korean Air anticipates uncertainties in the business environment this year due to shifts in the global political landscape, the airline said on Friday after reporting a record revenue for its 2024 financial year.
South Korea’s largest airline completed a $1.3 billion acquisition of rival Asiana Airlines in December to become one of Asia’s biggest carriers.
It reported a record annual revenue of KRW 16 trillion ($11 billion), up 10.6% on last year, and a 22.5% increase in operating profit at KRW 2 trillion.
Korean Air is also one of Asia’s largest cargo carriers, which has benefited in recent years from rising volumes of e-commerce out of China.
In the fourth quarter of 2024, cargo revenue was 9% higher than the same period a year earlier, while passenger revenue declined 3%, the airline said.
This year the airline anticipates further recovery in the China passenger market, which has lagged other markets in returning to travel since the pandemic.
This week, the U.S. imposed 10% tariffs on goods from China and also scrapped a customs duty exemption on low-value packages from China, which e-commerce firms had taken advantage of to ship increasing amounts of low-value duty-free packages.
“In 2025, Korean Air anticipates uncertainties in the business environment due to shifts in the global political landscape. However, the airline remains committed to strengthening its competitiveness as a leading global carrier by strategically preparing for its integration with Asiana Airlines,” the company said.
Korean Air intends to run Asiana as a subsidiary for up to two years before integrating into one airline under the Korean Air name but with new branding.
($1 = 1,446.7200 won)
(Reporting by Lisa Barrington; Editing by Eileen Soreng)
