Korean Air successfully pivoted to the air cargo business during COVID-19. Photo courtesy of Korean Air
SEOUL, April 1 (UPI) — Korean Air saw record profits last year even as the COVID-19 pandemic continued to impact the airline industry.
Korean Air saw its 2021 operating income jump some 12 times to a record-high $1.17 billion from a year before. Its sales also rose 18.4% year on year.
This is in contrast to many other airlines, which struggled to find their footing over the past two years due to the decrease in customers.
“Our workers received bonuses for the first time in three years. The amount is almost the same for all employees, although those from the cargo division got a little bit more,” a Korean Air official told UPI News Korea.
Korean Air’s cargo business is credited for much of the profit increase, as the company operates many charter and cargo-only passenger flights.
Air Transport World on Thursday picked Korean Air as “Cargo Operator of the Year,” and awarded U.S. carrier Alaska Airlines with the title “Airline of the Year.”
“Korean Air has continued to go from strength to strength, remaining at the forefront of addressing the global cargo capacity shortages resulting from the pandemic,” the ATW said in a statement.
Observers say that Korean Air will be able to bring in high profits this year, as well.
“Korean Air is expected to record a huge profit in 2022. But there are some uncertainties, including the rise in crude oil prices,” NH Investment & Securities analyst Jung Yeon-seung said in a phone interview.
Petroleum prices have soared since late February after Russia’s invasion of Ukraine, sparking concerns over a global fuel shortage for airlines.
