Korean Air has reported a 4 per cent decline in cargo revenue for the second quarter of its financial year, attributing the decrease to continued market volatility, largely influenced by changes in United States tariff policies.
The South Korean flag carrier, also one of Asia’s leading air freight operators, noted that its cargo segment had previously enjoyed consistent annual growth driven by a surge in e-commerce shipments from China. In the same quarter last year, cargo revenues had increased by 14 per cent year-on-year, marking a sustained upward trend until this latest reversal.
Recent disruptions stem largely from a shift in US trade policy. According to data cited by Reuters, air cargo volumes from Asia to the United States dropped sharply in May following the removal of a tax-free exemption for low-value packages from China. The move significantly impacted cross-border e-commerce shipments, a key revenue stream for Korean Air’s cargo division.
In a statement, Korean Air said it responded to the challenging environment by broadening its cargo portfolio and prioritising high-yield shipments. The airline highlighted increased focus on sectors such as semiconductors, batteries, solar cells, and seasonal perishables to cushion the effects of declining e-commerce volumes.
Despite the contraction in cargo performance, the company’s total revenue remained steady compared to the same quarter a year earlier, standing at 4 trillion won (approximately US$2.90 billion). However, operating profit declined by 3.5 per cent, with the airline citing rising personnel and depreciation costs as offsetting the benefit of lower fuel prices.
Korean Air completed its acquisition of Asiana Airlines last year in a US$1.30 billion deal, positioning it among the largest carriers in Asia by capacity and market share.
-Reuters
