1. Korean Air Q2 2025 Earnings: An Earnings Surprise

Korean Air reported revenue of ₩62.107 trillion (-1% YoY), operating profit of ₩370 billion (-12% YoY), and net profit of ₩557.2 billion (+124% YoY) for Q2 2025. While revenue and operating profit were slightly below expectations, net profit significantly surpassed forecasts, driven by financial restructuring related to the Asiana Airlines acquisition and one-off gains.

2. Business Segment Performance and Future Outlook

  • Passenger Business: Steady demand recovery is evident, particularly on routes to China, Japan, and the Americas. The summer peak season also contributed positively.
  • Cargo Business: Stable performance continues, supported by e-commerce and high-value cargo demand.
  • Aerospace Business: Increased demand for commercial aircraft and a contract extension with Boeing have laid the foundation for long-term growth. Investment in military aircraft MRO and unmanned aerial vehicle development is a key focus for future growth.
  • Hotel Business: Efforts to attract demand continue, leveraging the location of the Wilshire Grand Center and eco-friendly initiatives.

3. Key Investment Points and Action Plan

Korean Air presents a positive investment outlook based on its solid fundamentals and growth potential. The earnings surprise, in particular, has heightened investor expectations. Synergy effects from the Asiana Airlines acquisition, passenger demand recovery, and aerospace business growth are also notable investment points. However, investors should remain cautious of external risk factors such as a global economic slowdown and volatility in oil prices and exchange rates.
Investment Strategy: Buy