Korean Air is to shift its focus toward overseas and transit demand in a bid to counter geopolitical volatility impacting fuel prices and exchange rates.
Fluctuating oil prices have hit their highest levels for three and half years since the start of the Iran conflict at the end of February, while the Korean Won has depreciated significantly against the US dollar.
“In response to ongoing geopolitical volatility impacting fuel prices and exchange rates, Korean Air plans to protect margins by shifting its focus toward overseas and transit demand, offsetting a slowdown in domestic outbound travel,” the airline says.
That comes on top of Korean this month implementing internal cost reduction measures aimed at “strengthening its financial structure and building a more resilient foundation for long-term growth”.
Korean outlined the moves despite disclosing improved profits for the first three months of the year. The SkyTeam carrier posted first quarter operating profits of W517 billion ($352 million), up from W351 billion for the same period last year. Net profit increased 26% to W243 billion during the period.
Korean achieved its improved profit on record first quarter revenues of W4.52 trillion, an increase of 14% on the first quarter of 2025. The airline’s higher passenger revenues were driven by “robust” Lunar New Year demand and a strong performance on European and transit routes.
The latter in part reflects increased demand for alternative routings following the disruption to key transit hubs in the Gulf amid the Iran conflict.
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