Korean Air expects to add more air cargo capacity in the second half as the airline reinstates more passenger flights.

The airline made the comment as it reported its tentative financial results for the second quarter where it made KRW 3.3324 trillion (US$2.5775 billion) and an operating profit of KRW 735.9 billion (US$569.2 million) in the April-June period.

In terms of cargo, Korean Air recorded a cargo revenue of KRW 2.1712 trillion (US$1.67 billion), a 44% increase year-on-year.

"While the prolonged war in Ukraine and the lockdowns in China continued to disrupt the global logistics supply chain into Q2, the airline managed to maximize profit by actively transporting high-demand emergency relief supplies, automobile parts, semiconductors, and electronics," Korean Air said.

The growing travel demand due to dropping COVID-19 cases and borders reopening also led the airline to post KRW 874.2 billion (US$671 million) in passenger revenue in the second quarter, a 307% year-on-year increase. 

Slower recovery than expected

"The airline expects passenger traffic to recover slower than originally forecasted in the second half of the year, as external factors such as the pandemic and oil prices linger," the airline said, adding that Korean Air seeks to gradually increase its passenger network capacity to 50% of pre-pandemic levels by September.

"With the resumption of passenger services following border reopenings, the airline expects to procure additional air cargo capacity through passenger fleet belly cargo space," Korean Air added.

"The airline looks to maximize profit by utilizing scheduled passenger services; operating routes based on regional demand and capacity fluctuations; and through fleet optimization."

The airline said despite intensified global inflation and economic contraction, Korean Air is committed to normalizing its passenger business and to maximizing its cargo business profit.