Asia300

Korean Air Lines Co., Ltd.

South Korea

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May 29, 2017
Prev close: 35,050
May 29, 2017
Market cap:
Market cap(USD):
3,340.91B
2,978.43M
Shares: 95.95M

Currency in KRW

Company profile

Market(Ticker): KRX(003490)
Sector:
Industry:
Transportation
Airlines
Full time employees: 18,620

Business summary

Korean Air Lines Co., Ltd. engages in operating scheduled air transportation services. It provides air transportation services such as passenger, cargo, building lease, maintenance and training services. In addition, It also supplies aerospace, catering, in-flight sales and Limousines. The company was founded on June 19, 1962 and is headquartered in Seoul, South Korea.

Company background

Korean Air Lines, the largest airline in South Korea, is part of the Hanjin group, a conglomerate specializing in transportation. It is a key air carrier in Asia, with 115 routes worldwide as of the end of 2014. The airline was founded as a state-owned company in 1962 under the name Korean Air Lines and was privatized in 1969. It operates a wide range of services from air cargo to domestic and international passenger flights. Korean Air also operates an aerospace business that develops military and unmanned aircraft.

Its international passenger services are the company's largest source of profit, generating more than half the company's revenue. Air cargo services follow, accounting for more than 20% of revenue.

As of the end of March, it owned 149 aircraft, 122 for passengers and 27 for cargo. Its fleet ranges in size from Airbus A380 superjumbo to the midsize Boeing 737.

The South Korean airline plans to spend a total of $12.23 billion, based on list prices, to buy more than 100 new-model aircraft, including the Boeing 737 Max and Airbus A321neo.

Its discount affiliate, Jin Air, offers short-haul flights to Japan and China, as well as medium-length flights to Southeast Asia. Korean Air, by contrast, is looking to strengthen its service on major routes and long-haul overseas service.

Korean Air is a member of the SkyTeam international airline alliance.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 11,731.85B
Gross profit 2,246.86B
Operating income 1,105.51B
Income before tax -605,132.62M
Net income -564,881.98M
EBITDA 2,857.02B
Diluted EPS -7,245.93
Dividends per share --
Total assets 23,956.53B
Total liabilities 22,082.18B
Total equity 1,760.68B
Operating cash flow 2,383.56B

Currency in KRW

Revenue 10,112.01M
Gross profit 1,936.63M
Operating income 952.87M
Income before tax -521.58M
Net income -486.88M
EBITDA 2,462.54M
Diluted EPS -6.24
Dividends per share --
Total assets 19,834.85M
Total liabilities 18,282.98M
Total equity 1,457.76M
Operating cash flow 2,054.45M

Currency in USD

Valuation measures

Dec 2016

PER --
ROA -2.34%
ROE -27.23%
Operating margin 9.42%
Profit margin -4.81%

Key executive

  • Chairman & Co-Chief Executive Officer: Yang-Ho Cho
  • President, Co-Chief Executive Officer & Director: Chang-Hoon Chi
  • Co-Chief Executive Officer, VP-Finance & Director: Sang-Gyun Lee
  • Co-Chief Executive Officer, Director & VP: Won-Tae Cho
  • Vice President & Head-Technology: Young-Sik Gang

Share holders

  • HANJIN KAL Corp.(29.9%)
  • National Pension Service of Korea(7.5%)
  • Jungseok-Inha School's Foundation(2.7%)
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate(2.0%)
  • The Vanguard Group, Inc.(1.0%)
  • BlackRock Fund Advisors(0.9%)
  • Dimensional Fund Advisors LP(0.6%)
  • Norges Bank Investment Management(0.5%)
  • HANIL CEMENT Co., Ltd.(0.5%)
  • Goldman Sachs Asset Management International Ltd.(0.4%)

Address

  • Website: http://www.koreanair.com
  • Address: 260 Haneul-gil, Gangseo-gu, Seoul, 07505, South Korea
  • Phone: +82.2.2656.7114

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