Maximizes cargo transportation and improves operating profit through overall retrenchment
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Korean Air Chairman Cho Won-tae. (Photos: Korean Air)
Korean Air posted 1,950.8 billion won in sales and 196.9 billion won in operating profit in the second quarter of this year, the airliner said on Aug. 12.
The figures represented a 16 percent surge and a 31 percent jump over the same period of last year.
A Korean Air official said, “Despite the dwindled demand, caused by the COVID-19 pandemic, we’ve achieved a surplus in Q2 operation profit for the fifth consecutive quarter from the second quarter of 2020 by maximizing cargo transportation and conducing overall retrenchment efforts.”
The cargo business posted 1,510.8 billion won in Q2, the best-ever achievement on a quarterly basis.
The achievement was attributable to factors such as a rise in corporate stockpile, coupled with the recovery of the economy, emergency shipments’ air cargo shift, stemming from maritime cargo congestion.
KDB’s Approval of Korean Air PMI Plan for Asiana Airlines Likely to Expedite Merger
Korea Development Bank approved Korean Air’s post-merger integration (PMI) plan for Asiana Airlines on June 30.
The step advances Korea Air’s purchase of Asiana Airlines, with the pending approval of the Fair Trade Commission being the last hurdle.
The PMI plan containing the integration business strategy of the two airlines was submitted to the creditor bank, KDB.
The approval comes after three months of the PMI plan review by KDB as well as the Korean Ministry of Land, Infrastructure and Transport (MOLIT).
KDB said its confirmation of the PMI plan is predicted to speed up Korean Air’s merger with Asiana Airlines.
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Chairman Lee Dong-gull of Korea Development Bank. (Photo: KDB)
KDB said the Korean Air Management Evaluation Committee has reflected major integration tasks in evaluation categories in order to carry out the PMI plan without interruption.
Every year, management evaluations will be conducted to look into the implementation of the PMI plan and all matters related to consumers’ benefits, such as fares and flight routes, the creditor bank said.
KDB said it plans to evaluate the requirements for the two airliners’ integration prior to the official merger, and the implementation of the PMI plan following the merger.
KDB said it plans to aggressively cooperate in reviews by the Korean Fair Trade Commission and each country’s competition authorities.
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Korea Air B777 carrying the logo of SkyTeam. (Photo: Korean Air)
Korean Air Chmn. Cho Reelected as SkyTeam Chairman
Chairman Walter Cho of Korean Air was reelected as chairman of SkyTeam, an alliance dedicated to providing passengers with a more seamless travel experience on every step of their journey.
His term will last until 2023. Chairman Cho was elected in June 2019. SkyTeam is one of the world’s three airline alliances along with Star Alliance and One World.
Meanwhile, Korea Air won the 2021 Airline of the Year Award from the global airline journal Air Transport World (ATW).
Korean Air made it onto the list of ATM’s Airline of the Year awardees, dubbed “the Academy Award of the airline industry.”
ATM’s global screening panel presents the Airline of the Year Award every year by comprehensively evaluating areas such as financial soundness, business operation, customer service, sustainability and safety.
The 47th ATM awards ceremony will be held in Boston, the United States, on Oct. 5.
Korean Air was recognized for logging a surplus in operating profit despite the crisis caused by COVID-19 pandemic, and pushing ahead with its bid to acquire Asiana Airlines.
Korean Air chalked up a surplus in operating profit in the first quarter of this year for the fourth consecutive quarter by ramping up the cargo business.
Korean Air Chairman Cho said the good business performance was owed to Korean Air executives and staffers’ dedication and sacrifices.
Korean Air will make endless efforts to offer excellent services, he added.
