SOUTH KOREA: South Korea air freight to enjoy healthy growth

Airfreight operators in South Korea are benefiting from a strong recovery in the industry, according to a new report from Business Monitor International (BMI). In April, Korean Air reported record results for Q1 which saw operating profits for the company rise to KRW220.2 billion (US$197.6 million), a rise of 3,300 per cent compared with the […]


Airfreight operators in South Korea are benefiting from a strong recovery in the industry, according to a new report from Business Monitor International (BMI). In April, Korean Air reported record results for Q1 which saw operating profits for the company rise to KRW220.2 billion (US$197.6 million), a rise of 3,300 per cent compared with the same period in 2009. Despite the massive slump in airfreight demand in 2009, creating a low baseline for comparisons, BMI believes that the results are still impressive and are the best for the carrier since Q3 of 2008.

Korean Air is now expecting profits for the year to reach KRW1 trillion (US$896 million). Industry observers have said that the results are indicative of a strong global rebound for the aviation and air freight businesses. Cargo utilisation for Korean Air increased to 77.1 per cent in Q1 2010 compared with 70.6 per cent in Q1 of 2009. Meanwhile, cargo revenue for the carrier was up 57 per cent, with both the Japan and China routes exceeding their pre-crisis performances. Demand is expected to stay strong in the future as a result of rebounding exports of IT products and trade agreements between Korea and India, and also the EU, BMI said.