HONG KONG, July 13 (Reuters) - Korean Air Lines reported a 34% drop in second-quarter operating profit on Monday, as surging fuel costs weighed on earnings despite the carrier posting record revenue for the quarter.
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The South Korean flag carrier said operating profit for the April-June period fell to 261.8 billion won ($174.52 million) from 398.9 billion won a year earlier.
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Revenue climbed to a 5.02 trillion won, up 26% year-on-year, a record for the second quarter.
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Passenger revenue rose about 19% year-on-year to 2.85 trillion won in the second quarter.
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Stronger inbound tourism and rising transit demand, partly fuelled by geopolitical disruptions in the Middle East, helped offset a softening in outbound travel from South Korea amid higher oil prices.
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Cargo revenue surged about 46% year-on-year to 1.54 trillion won, driven by robust demand tied to global artificial intelligence investments and strong exports of South Korean beauty products.
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Korean Air said it expected passenger demand to rebound in the third quarter, buoyed by peak summer travel and lower fuel surcharges, while targeting high-growth cargo segments, particularly AI-related industries, to sustain revenue momentum.
($1 = 1,500.1000 won)
Reporting by Julie Zhu; Editing by Jamie Freed
Source: Reuters