Korean Air 2quarterly operating profit 2,618billion won…earnings surprise

Korean Air stated that 13the 2quarterly standalone operating profit is 2,618billion won, a decrease of 34.4% compared to the same period last year. This figure is the formal quarterly performance publicly announced by the company.

The company also stated that the operating profit exceeded market expectations by more than 6times, classifying it as an 'earnings surprise'.

Sales on a standalone basis were reported at 5trillion199won, marking an increase of 25.9% year-on-year, as detailed in its public disclosure. The revenue growth rate and total revenue figures are specified in the disclosure.

High oil prices were cited as a background for the decrease in operating profit. The company noted that oil price burdens affected its performance.

In the same disclosure, the company explained that the depreciation of the won contributed to increased passenger demand heading to Korea and increasing cargo demand, helping to defend profitability. It added that increased demand related to K-culture had some impact.

However, due to evaluation losses caused by high exchange rates, the net profit turned into a loss, as stated in the disclosure. The disclosure only contains the fact of turning into a net profit loss, with no specific amount mentioned separately.

This announcement is based on the public disclosure from 13. The company reported its performance on a standalone basis.

Investors need to check the disclosed standalone figures along with the notes related to exchange rates.