Korean Air expects its cargo business to continue expanding through the end of year — driven mostly by peak-season boost. 

While passenger numbers also remain weak, the Seoul-based carrier noted that it forecasts the segment to start bouncing back as more countries reopen their borders.

Highest cargo revenue recorded

For the third quarter, Korean Air said its cargo business achieved a revenue of KRW 1.6503 trillion (US$1.393 billion), the highest quarterly revenue recorded to date.

"The strong performance can be attributed to the global supply chain bottleneck, increase in air cargo demand, and a lack of passenger flight belly cargo capacity, which have led to the increase in shipment volumes and rates," Korean Air said.

The previous quarterly cargo revenue record was at  KRW 1.5108 trillion in the second quarter.

While passenger numbers also remain weak, the Seoul-based carrier noted that it forecasts the segment to start bouncing back as more countries reopen their borders.

"While passenger demand remained low in the third quarter due to the spread of COVID-19 variants, stronger demand on the Americas network and the resurgence in summer domestic travel attributed to a 55% increase in sales compared to the second quarter, amounting to KRW 331.9 billion (USD 280.1 million)," it said.

Moving forward, Korean Air noted that its cargo performance is expected to continue its growth trajectory.

"Cargo business performance forecast is to remain robust through the fourth quarter with holiday and year-end peak demand, and continued supply imbalance," the carrier said.

"The airline will continue to operate its cargo-only passenger flights to maximize aircraft utilization and increase air cargo capacity. The airline will also secure alternative airports, and recruit additional ground handling contractors to sustain its profitable operation," it added. 

Korean Air said it expects passenger demand to "remain weak in the fourth quarter" — however, with more countries reopening up their borders, prospects of increased passenger demand are "more likely."

The airline said it plans to flexibly operate and gradually expand its regular and charter flights to destinations that do not require quarantine upon arrival such as Hawaii, Guam, Chiang Mai and Spain.