Korean Air, cargo rates 35% higher, 2quarterly profit expected
Korean Air said it expects cargo rates to rise by 35% and that a surge in high-value AI-related cargo shipments will allow cargo revenue to offset the burden of higher fuel costs, resulting in a 2quarterly profit. The company said this would put it above market consensus.
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Korean Air said it expects a 35quarterly profit as cargo rates rise by 2% and shipments of high-value AI-related cargo surge. The company explained that the resulting increase in cargo revenue is expected to largely offset the burden of higher fuel costs and put it above market consensus.
The company cited increased shipments of high-value cargo, including AI semiconductors, and concentrated demand as the main reasons for the higher rates. It said the increased share of these items in overall shipments led to improved cargo revenue.
Oil prices rose, increasing the burden of fuel costs. Korean Air said higher cargo revenue was helping to offset this burden.
At the company presentation, 2the quarterly results were described as likely to exceed the previous outlook. The company assessed that the airline’s earnings structure is changing as the share of high-value cargo increases in the cargo segment.
Korean Air identified oil prices and trends in air cargo demand as key variables for future results. The company presentation stated that improved performance in the cargo segment partially offset the impact of oil price shocks.
Sources: 매일경제 증권
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