ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Transportation

KOREAN AIR LINES Co., Ltd.

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.

Business Summary

KOREAN AIR LINES Co., Ltd. engages in operating scheduled air transportation services. It operates through the following business divisions: Air Transportation, Air Space, and Others. 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.

Financial Highlights

Dec 2020 KRWUSD
Revenue7,606.22B6,446.56M
Gross Profit676,354.74M573.23M
Operating income107,971.47M91.50M
Income before tax-933,246.16M-790.96M
Net income-861,849.60M-730.45M
EBITDA2,069.54B1,754.01M
Diluted EPS-5,105.83-4.32
Dividends Per Share00
Total Assets25,190.06B23,188.86M
Total liabilities22,556.49B20,764.51M
Total equity2,528.34B2,327.48M
Operating cash flow776,098.97M657.77M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 11,731.85B 12,092.21B 13,011.64B 12,384.26B 7,606.22B
Gross Profit 2,246.86B 2,059.29B 2,033.65B 1,365.03B 676,354.74M
Operating income 1,105.51B 939,999.78M 671,650.20M 175,624.82M 107,971.47M
Income before tax -605,132.62M 1,121.69B -178,264.61M -815,020.32M -933,246.16M
Net income -564,881.98M 791,510.24M -168,480.81M -749,585.65M -861,849.60M
EBITDA 2,857.02B 2,633.01B 2,422.28B 2,249.29B 2,069.54B
Diluted EPS -4,916.97 5,862.95 -1,191.47 -4,516.12 -5,105.83
Dividends Per Share 0 169.64 169.64 0 0
Total Assets 23,956.53B 24,648.67B 25,842.50B 27,014.11B 25,190.06B
Total liabilities 22,082.18B 20,897.57B 23,381.01B 25,312.62B 22,556.49B
Total equity 1,760.68B 3,629.43B 2,338.42B 1,576.89B 2,528.34B
Operating cash flow 2,383.56B 2,315.88B 2,205.08B 1,610.78B 776,098.97M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 10,112.01M 10,696.24M 11,823.20M 10,619.47M 6,446.56M
Gross Profit 1,936.63M 1,821.56M 1,847.90M 1,170.51M 573.23M
Operating income 952.87M 831.48M 610.30M 150.59M 91.50M
Income before tax -521.58M 992.20M -161.98M -698.87M -790.96M
Net income -486.88M 700.13M -153.09M -642.76M -730.45M
EBITDA 2,462.54M 2,329.05M 2,201.04M 1,928.76M 1,754.01M
Diluted EPS -4.23 5.18 -1.08 -3.87 -4.32
Dividends Per Share 0 0.15 0.15 0 0
Total Assets 19,834.85M 23,024.30M 23,160.51M 23,359.52M 23,188.86M
Total liabilities 18,282.98M 19,520.40M 20,954.48M 21,888.21M 20,764.51M
Total equity 1,457.76M 3,390.25M 2,095.73M 1,363.56M 2,327.48M
Operating cash flow 2,054.45M 2,048.53M 2,003.67M 1,381.24M 657.77M

Valuation Measures

Dec 2020
PER--
ROA-3.30%
ROE-41.98%
Operating margin1.41%
Profit margin-11.33%

Key executives

  • Co-CEO, Director & Head-Strategy Management: Gi-Hong Woo
  • President, Co-Chief Executive Officer & Director: Won-Tae Cho
  • Senior Managing Director & Head-Finance: Eun-Yong Ha
  • Director & Vice President-Technology: Soo-Geun Lee
  • Senior Managing Director & Head-Aerospace: In-Hwa Kim

Shareholders

  • HANJIN KAL Corp. (27.6%)
  • National Pension Service of Korea (7.3%)
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate (4.0%)
  • The Vanguard Group, Inc. (1.2%)
  • BlackRock Fund Advisors (1.1%)
  • Jungseok-Inha School's Foundation (0.7%)
  • Dimensional Fund Advisors LP (0.5%)
  • Samsung Asset Management Co., Ltd. (0.5%)
  • Norges Bank Investment Management (0.4%)
  • BlackRock Advisors (UK) Ltd. (0.2%)

Contact Details

Related Companies

  • KE Export Leasing 2013-D LLC
  • Taeil Catering Co., Ltd.
  • KAL ABS 23 Cayman Ltd.
  • KAL ABS 17 Cayman Ltd.
  • HomeoTherapy Co., Ltd.
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate
  • Global Logistics System Korea Co. Ltd.
  • Export Leasing 2009 LLC
  • KAL ABS 15 Cayman Ltd.
  • Korean Air Lines /Limousine Ops/
  • KE Export Leasing 2000 Ltd.
  • KE Export Leasing (2011-II) LLC
  • KE Export Leasing (2013-B) LLC
  • KAL Japan ABS 10 Cayman Ltd.
  • KE Export Leasing (2013-A) LLC
  • Incheon Aviation Tech Co., Ltd.
  • Hanjin Travel Service Co. /Investment Operation/
  • CyberSky Co., Ltd.
  • Korean Air Lines Co. Ltd. (California)
  • KAL Japan ABS 6 Cayman Ltd.
  • Inha Corp.
  • Korean Air Lease & Finance CoLimited
  • Kal Hotel Network Co. Ltd.
  • Air Total Service Co. Ltd.
  • Incheon International Airport Fuel Facilities Co., Ltd.
  • KAL Japan ABS 3 Cayman Ltd.
  • Hanjin Energy Co., Ltd.
  • Hanjin Information Systems & Telecommunication Co., Ltd.
  • KOREA AIRPORT SERVICE Co., Ltd.
  • KAL ABS 8 Cayman Ltd.

Competitors

  • Asiana Airlines Inc.
  • PT Garuda Indonesia (Persero) Tbk Class B
  • China Airlines Ltd.
  • Firstec Co., Ltd
  • El Al Israel Airlines Ltd
  • JEJUAIR CO., LTD.
  • PAL Holdings, Inc.
  • LIG Nex1 Co., Ltd.
  • AeroSpace Technology of Korea, Inc.
  • Air Busan Co., Ltd.
  • JIN AIR Co., Ltd.
  • Nippon Yusen Kabushiki Kaisha
  • AK Holdings, Inc.
Last Updated on 11 Jun, 2021

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more