Korean Air recorded nearly a 20 percent drop in operating profit in the first quarter of the year, due to increased costs related to new aircraft and a weakening Korean won.

According to preliminary figures released by the national flag carrier on Sunday, revenue for the January–March period reached 3.95 trillion won ($2.77 billion) on a nonconsolidated basis, up 3 percent from the previous year.

Despite the record revenue, Korean Air’s operating profit dropped to 350.9 billion won, down from 436.1 billion won a year earlier. Net profit fell even more sharply, plunging 44 percent to 193.2 billion won.

Korean Air cited rising operating expenses as a key factor behind the profit dip, particularly costs tied to new aircraft introduced after pandemic-era delays. Rising unit costs from a weaker won also contributed to the decline, the company explained.

“The new aircraft is part of a mid-to-long-term investment strategy aimed at expanding capacity, enhancing service quality and improving profitability through a broader network and upgraded services,” the company said in a statement.

The airline has added 16 planes to its fleet since the second quarter of last year.

According to the company, revenue from the air travel sector rose 4 percent on-year to 2.43 trillion won, thanks to holiday rush periods, while cargo revenue climbed 6 percent to 1.05 trillion won, supported by solid demand for shipments of electronics, auto parts and fresh goods.

The airline expects stronger second-quarter results as travel demand rises during the May holidays, with new routes and chartered operations expanding to high-demand destinations such as Southeast Asia, China and Japan.

It also noted it will closely monitor cargo demand, which may face volatility due to new US tariff measures.

By No Kyung-min (minmin@heraldcorp.com