Korean Air expects its cargo business to stay positive for the second quarter after it recorded a fourth consecutive quarter of operating profit of KRW 124.5 billion (US$110 million) thanks to its continuous efforts to boost cargo operations and reduce costs.

In a statement, the South Korean flag carrier said its sales fell 24% year on year to KRW 1.7498 trillion (US$1.544 billion) due to passenger demand drop caused by the Covid-19 pandemic.

Q1 cargo volume "more than doubled"

"Compared to 2020 Q1, cargo sales more than doubled to KRW 1.353 trillion. Despite decreased passenger flight belly capacity because of the pandemic, Korean Air maximized cargo operations by fully utilizing its 23 freighters, operating cargo-only passenger flights, and converting passenger jets into freighters," Korean Air said in a statement.

It added that as vaccination progresses, expectations on global economic recovery grow, which helps increase air cargo demand.

The carrier noted, however, that passenger demand is still low due to continued travel restrictions of each country. 

Q2 cargo outlook cited 

"The cargo business in the second quarter is expected to be positive due to a lack of belly cargo supply of passenger flights, a recovery of global trade, and increased shipping and logistics demand," the carrier said. 

"Korean Air plans to promote its cargo business now using its network, operations, and experience rather than later this year when more airlines jump into the cargo business and shipping disruption improves," it added.

Meanwhile, Korean Air’s passenger business will operate its network flexibly considering factors and trends that affect the recovery of international passenger demand, including immigration restrictions of main routes and vaccination rates.

The airline noted that it will also closely monitor and take action to change the environment of air travel such as vaccine passports or travel bubbles.