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Transportation

Korean Air Lines Co., Ltd.

  • 33,100.00 KRW
  • -250.00
  • -0.75%
  • South Korea
    Apr 20, 2018
  • Ticker
    KRX(003490)
  • Prev. close
    33,350
  • Market cap (KRW)
    3,179.51B
  • Market cap (USD)
    2,979.16M
  • Shares
    95.95M

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 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 2017 KRWUSD
Revenue12,092.21B10,696.24M
Gross Profit2,059.29B1,821.56M
Operating income939,999.78M831.48M
Income before tax1,121.69B992.20M
Net income791,510.24M700.13M
EBITDA2,633.01B2,329.05M
Diluted EPS8,6407.64
Dividends Per Share2500.22
Total Assets24,648.67B23,024.30M
Total liabilities20,897.57B19,520.40M
Total equity3,629.43B3,390.25M
Operating cash flow2,315.88B2,048.53M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 11,848.70B 11,909.74B 11,544.83B 11,731.85B 12,092.21B
Gross Profit 1,065.97B 1,488.87B 1,990.65B 2,246.86B 2,059.29B
Operating income -20,014.42M 395,325.88M 840,388.36M 1,105.51B 939,999.78M
Income before tax -424,903.83M -290,848.31M -503,848.17M -605,132.62M 1,121.69B
Net income -346,639.81M -203,372.70M -405,115.44M -564,881.98M 791,510.24M
EBITDA 1,633.15B 1,988.35B 2,491.31B 2,857.02B 2,633.01B
Diluted EPS -3,140.14 -7,296.79 -7,556.10 -7,245.93 8,640
Dividends Per Share 0 0 0 0 250
Total Assets 22,920.43B 23,465.72B 24,180.35B 23,956.53B 24,648.67B
Total liabilities 20,180.22B 21,264.56B 21,681.31B 22,082.18B 20,897.57B
Total equity 2,646.99B 2,090.94B 2,387.11B 1,760.68B 3,629.43B
Operating cash flow 1,459.56B 1,397.67B 2,342.28B 2,383.56B 2,315.88B
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 10,823.08M 11,313.97M 10,200.38M 10,112.01M 10,696.24M
Gross Profit 973.70M 1,414.39M 1,758.83M 1,936.63M 1,821.56M
Operating income -18.28M 375.55M 742.52M 952.87M 831.48M
Income before tax -388.12M -276.29M -445.17M -521.58M 992.20M
Net income -316.63M -193.19M -357.93M -486.88M 700.13M
EBITDA 1,491.78M 1,888.88M 2,201.18M 2,462.54M 2,329.05M
Diluted EPS -2.86 -6.93 -6.67 -6.24 7.64
Dividends Per Share 0 0 0 0 0.22
Total Assets 21,718.32M 21,348.97M 20,622.02M 19,834.85M 23,024.30M
Total liabilities 19,121.83M 19,346.37M 18,490.73M 18,282.98M 19,520.40M
Total equity 2,508.16M 1,902.32M 2,035.82M 1,457.76M 3,390.25M
Operating cash flow 1,333.22M 1,327.75M 2,069.51M 2,054.45M 2,048.53M

Valuation Measures

Dec 2017
PER3.91
ROA3.25%
ROE29.36%
Operating margin7.77%
Profit margin6.54%

Key executives

  • Chairman & Co-Chief Executive Officer: Yang-Ho Cho
  • Co-Chief Executive Officer & Director: Gi-Hong Woo
  • President, Co-Chief Executive Officer & Director: Won-Tae Cho
  • Executive Director & Head-Finance: Eun-Yong Ha
  • Head-Compliance Support: Byung-Chang Kim

Shareholders

  • HANJIN KAL Corp. (29.9%)
  • National Pension Service of Korea (12.5%)
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate (4.0%)
  • Jungseok-Inha School's Foundation (2.7%)
  • The Vanguard Group, Inc. (1.2%)
  • BlackRock Fund Advisors (1.1%)
  • Dimensional Fund Advisors LP (0.9%)
  • Samsung Asset Management Co., Ltd. (0.6%)
  • HANIL CEMENT Co., Ltd. (0.5%)
  • APG Asset Management NV (0.4%)

Contact Details

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Competitors

  • Asiana Airlines Inc.
  • China Eastern Airlines Corporation Limited Class H
  • Avianca Taca Holdings S.A Pfd
  • China Airlines Ltd.
  • Jeju Air Co., Ltd.
  • PAL Holdings, Inc.
  • AeroSpace Technology of Korea, Inc.
  • Air Canada
  • LIG Nex1 Co., Ltd.
  • HANJIN KAL Corp.
  • Nippon Yusen Kabushiki Kaisha
  • AK Holdings, Inc.
Last Updated on 20 Apr, 2018

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