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 2022	KRW	USD
Revenue	14,096.09B	10,909.43M
Gross Profit	3,757.76B	2,908.25M
Operating income	2,832.96B	2,192.52M
Income before tax	2,561.96B	1,982.78M
Net income	1,724.40B	1,334.57M
EBITDA	4,482.70B	3,469.31M
Diluted EPS	4,787.06	3.70
Dividends Per Share	750	0.58
Total Assets	28,997.70B	22,932.14M
Total liabilities	19,705.24B	15,583.42M
Total equity	8,994.19B	7,112.84M
Operating cash flow	5,170.10B	4,001.31M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	13,011.64B	12,384.26B	7,610.53B	9,016.82B	14,096.09B
Gross Profit	2,033.65B	1,365.03B	675,036.73M	2,029.64B	3,757.76B
Operating income	671,650.20M	175,624.82M	106,942.38M	1,409.50B	2,832.96B
Income before tax	-178,264.61M	-815,020.32M	-934,840.24M	843,142.90M	2,561.96B
Net income	-168,480.81M	-749,585.65M	-862,627.58M	560,947.10M	1,724.40B
EBITDA	2,422.28B	2,249.29B	2,069.22B	3,104.86B	4,482.70B
Diluted EPS	-1,191.47	-4,516.12	-1,671.76	1,656.22	4,787.06
Dividends Per Share	169.64	0	0	0	750
Total Assets	25,842.50B	27,014.11B	25,190.06B	26,671.90B	28,997.70B
Total liabilities	23,381.01B	25,312.62B	22,556.49B	20,106.18B	19,705.24B
Total equity	2,338.42B	1,576.89B	2,528.34B	6,453.93B	8,994.19B
Operating cash flow	2,205.08B	1,610.78B	776,098.97M	3,085.05B	5,170.10B

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	11,823.20M	10,619.47M	6,450.21M	7,873.86M	10,909.43M
Gross Profit	1,847.90M	1,170.51M	572.11M	1,772.37M	2,908.25M
Operating income	610.30M	150.59M	90.63M	1,230.83M	2,192.52M
Income before tax	-161.98M	-698.87M	-792.31M	736.26M	1,982.78M
Net income	-153.09M	-642.76M	-731.10M	489.84M	1,334.57M
EBITDA	2,201.04M	1,928.76M	1,753.75M	2,711.29M	3,469.31M
Diluted EPS	-1.08	-3.87	-1.41	1.44	3.70
Dividends Per Share	0.15	0	0	0	0.58
Total Assets	23,160.51M	23,359.52M	23,188.86M	22,436.93M	22,932.14M
Total liabilities	20,954.48M	21,888.21M	20,764.51M	16,913.71M	15,583.42M
Total equity	2,095.73M	1,363.56M	2,327.48M	5,429.17M	7,112.84M
Operating cash flow	2,003.67M	1,381.24M	657.77M	2,693.99M	4,001.31M

Valuation Measures

Dec 2022
PER	4.79
ROA	6.19%
ROE	22.32%
Operating margin	20.09%
Profit margin	12.23%

Management

Chairman & Co-Chief Executive Officer: Won-Tae Cho
Co-CEO, Director & Head-Strategy Management: Gi-Hong Woo
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. (26.1%)
National Pension Service of Korea (7.3%)
Korean Air Lines Co. Ltd. Employee Stock Ownership Associate (4.3%)
The Korea Development Bank (Investment Management) (3.3%)
The Vanguard Group, Inc. (1.7%)
BlackRock Fund Advisors (1.0%)
Norges Bank Investment Management (0.8%)
Jungseok-Inha School's Foundation (0.7%)
Samsung Asset Management Co., Ltd. (0.6%)
Dimensional Fund Advisors LP (0.5%)

Contact Details

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

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Competitors

Asiana Airlines Inc.
China Airlines Ltd.
Firstec Co., Ltd
PAL Holdings, Inc.
JEJUAIR CO., LTD.
LATAM Airlines Group SA
Hucentech Co., Ltd.
AeroSpace Technology of Korea, Inc.
Air Busan Co., Ltd.
JIN AIR Co., Ltd.
Earth & Aerospace Manufacturing Ind. Co. Ltd
AK Holdings, Inc.

Last Updated on 22 Sep, 2023