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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 2019 KRWUSD
Revenue12,683.40B10,875.98M
Gross Profit1,530.63B1,312.51M
Operating income257,011.97M220.38M
Income before tax-734,707.02M-630.00M
Net income-629,084.61M-539.43M
EBITDA2,339.64B2,006.23M
Diluted EPS-5,564.20-4.77
Dividends Per Share00
Total Assets27,014.11B23,359.52M
Total liabilities25,312.62B21,888.21M
Total equity1,576.89B1,363.56M
Operating cash flow1,649.55B1,414.48M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 11,544.83B 11,731.85B 12,092.21B 13,011.64B 12,683.40B
Gross Profit 1,990.65B 2,246.86B 2,059.29B 2,033.65B 1,530.63B
Operating income 840,388.36M 1,105.51B 939,999.78M 671,650.20M 257,011.97M
Income before tax -503,848.17M -605,132.62M 1,121.69B -178,264.61M -734,707.02M
Net income -405,115.44M -564,881.98M 791,510.24M -168,480.81M -629,084.61M
EBITDA 2,491.31B 2,857.02B 2,633.01B 2,422.28B 2,339.64B
Diluted EPS -6,413.00 -6,149.76 7,332.92 -1,490.20 -5,564.20
Dividends Per Share 0 0 212.17 212.17 0
Total Assets 24,180.35B 23,956.53B 24,648.67B 25,842.50B 27,014.11B
Total liabilities 21,681.31B 22,082.18B 20,897.57B 23,381.01B 25,312.62B
Total equity 2,387.11B 1,760.68B 3,629.43B 2,338.42B 1,576.89B
Operating cash flow 2,342.28B 2,383.56B 2,315.88B 2,205.08B 1,649.55B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 10,200.38M 10,112.01M 10,696.24M 11,823.20M 10,875.98M
Gross Profit 1,758.83M 1,936.63M 1,821.56M 1,847.90M 1,312.51M
Operating income 742.52M 952.87M 831.48M 610.30M 220.38M
Income before tax -445.17M -521.58M 992.20M -161.98M -630.00M
Net income -357.93M -486.88M 700.13M -153.09M -539.43M
EBITDA 2,201.18M 2,462.54M 2,329.05M 2,201.04M 2,006.23M
Diluted EPS -5.66 -5.30 6.48 -1.35 -4.77
Dividends Per Share 0 0 0.18 0.19 0
Total Assets 20,622.02M 19,834.85M 23,024.30M 23,160.51M 23,359.52M
Total liabilities 18,490.73M 18,282.98M 19,520.40M 20,954.48M 21,888.21M
Total equity 2,035.82M 1,457.76M 3,390.25M 2,095.73M 1,363.56M
Operating cash flow 2,069.51M 2,054.45M 2,048.53M 2,003.67M 1,414.48M

Valuation Measures

Dec 2019
PER--
ROA-2.38%
ROE-32.13%
Operating margin2.02%
Profit margin-4.95%

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. (29.2%)
  • National Pension Service of Korea (7.0%)
  • Jungseok-Inha School's Foundation (1.4%)
  • The Vanguard Group, Inc. (1.3%)
  • Dimensional Fund Advisors LP (1.1%)
  • BlackRock Fund Advisors (1.1%)
  • Norges Bank Investment Management (1.0%)
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate (0.9%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • Mirae Asset Global Investments Co., Ltd. (0.2%)

Contact Details

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Competitors

  • Asiana Airlines Inc.
  • PT Garuda Indonesia (Persero) Tbk Class B
  • China Airlines Ltd.
  • Firstec Co., Ltd
  • El Al Israel Airlines Ltd
  • Knafaim Holdings Ltd.
  • JEJUAIR CO., LTD.
  • PAL Holdings, Inc.
  • LIG Nex1 Co., Ltd.
  • AeroSpace Technology of Korea, Inc.
  • Air Busan Co., Ltd.
  • JIN AIR Co., Ltd.
  • Latecoere SA
  • HANJIN KAL Corp.
  • Nippon Yusen Kabushiki Kaisha
  • AK Holdings, Inc.
Last Updated on 27 Oct, 2020

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