Korean Air reported higher operating profit for the first quarter of the year driven by the recovery of passenger traffic and strong cargo revenue.

The carrier said posted revenue of KRW 2.8052 trillion (US$2.3168 billion) and a record quarterly operating profit of KRW 788.4 billion (US$651.1 million) in the first quarter — after pulling in KRW 704.4 billion in the fourth quarter of 2021.

In its announcement of the airline's financial results, Korean Air said revenue from its passenger flight operations in the first quarter increased by 128% year-on-year to KRW 359.8 billion although passenger demand "remained sluggish" due to the spread of the COVID-19 Omicron variant.

"Demand is gradually recovering as countries ease their entry restrictions one by one. On March 21, Korea lifted the mandatory quarantine for fully vaccinated travelers, helping to boost travel demand," Korean Air said.

Uncertainties in cargo markets to persist

In terms of cargo, South Korea's largest airline recorded revenue of KRW 2.1486 trillion in the January to March period of 2022.

"Uncertainties in the air cargo market persisted due to various external factors such as global supply chain bottlenecks, reduction in capacity on Europe routes, and high fuel prices," the airline said, noting that it is taking "preemptive measures" to maintain its air cargo capacity through close management of ground handling operations and flexible network operations.

"The airline maximized its revenue through increasing freighter operation rates and using grounded passenger jets on cargo routes," Korean Air said.

The Seoul-based carrier said the recovery in global passenger demand is also foreseen to gradually boost global air cargo capacity — although "instability in regional air cargo markets is expected to persist due to major Chinese city lockdowns and the war in Ukraine."