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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 2022 KRWUSD
Revenue14,096.66B10,909.87M
Gross Profit----
Operating income2,830.70B2,190.77M
Income before tax2,562.26B1,983.01M
Net income1,732.38B1,340.74M
EBITDA----
Diluted EPS----
Dividends Per Share----
Total Assets29,000.19B22,934.11M
Total liabilities----
Total equity8,999.42B7,116.98M
Operating cash flow----
Currency in KRWCurrency in USD

Historical Data

 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 13,011.64B 12,384.26B 7,610.53B 9,016.82B 14,096.66B
Gross Profit 2,033.65B 1,365.03B 675,036.73M 2,029.64B --
Operating income 671,650.20M 175,624.82M 106,942.38M 1,409.50B 2,830.70B
Income before tax -178,264.61M -815,020.32M -934,840.24M 843,142.90M 2,562.26B
Net income -168,480.81M -749,585.65M -862,627.58M 560,947.10M 1,732.38B
EBITDA 2,422.28B 2,249.29B 2,069.22B 3,104.86B --
Diluted EPS -1,191.47 -4,516.12 -1,671.76 1,656.22 --
Dividends Per Share 169.64 0 0 0 --
Total Assets 25,842.50B 27,014.11B 25,190.06B 26,671.90B 29,000.19B
Total liabilities 23,381.01B 25,312.62B 22,556.49B 20,106.18B --
Total equity 2,338.42B 1,576.89B 2,528.34B 6,453.93B 8,999.42B
Operating cash flow 2,205.08B 1,610.78B 776,098.97M 3,085.05B --
 Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022
Revenue 11,823.20M 10,619.47M 6,450.21M 7,873.86M 10,909.87M
Gross Profit 1,847.90M 1,170.51M 572.11M 1,772.37M --
Operating income 610.30M 150.59M 90.63M 1,230.83M 2,190.77M
Income before tax -161.98M -698.87M -792.31M 736.26M 1,983.01M
Net income -153.09M -642.76M -731.10M 489.84M 1,340.74M
EBITDA 2,201.04M 1,928.76M 1,753.75M 2,711.29M --
Diluted EPS -1.08 -3.87 -1.41 1.44 --
Dividends Per Share 0.15 0 0 0 --
Total Assets 23,160.51M 23,359.52M 23,188.86M 22,436.93M 22,934.11M
Total liabilities 20,954.48M 21,888.21M 20,764.51M 16,913.71M --
Total equity 2,095.73M 1,363.56M 2,327.48M 5,429.17M 7,116.98M
Operating cash flow 2,003.67M 1,381.24M 657.77M 2,693.99M --

Valuation Measures

Dec 2022
PER4.89
ROA6.22%
ROE22.42%
Operating margin20.08%
Profit margin12.28%

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. (26.1%)
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate (8.4%)
  • National Pension Service of Korea (6.2%)
  • The Korea Development Bank (Investment Management) (3.3%)
  • The Vanguard Group, Inc. (1.3%)
  • BlackRock Fund Advisors (1.1%)
  • Norges Bank Investment Management (0.7%)
  • Jungseok-Inha School's Foundation (0.7%)
  • Samsung Asset Management Co., Ltd. (0.6%)
  • Dimensional Fund Advisors LP (0.4%)

Contact Details

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Competitors

  • Asiana Airlines Inc.
  • China Airlines Ltd.
  • Firstec Co., Ltd
  • El Al Israel Airlines Ltd
  • PAL Holdings, Inc.
  • JEJUAIR CO., LTD.
  • Hucentech Co., Ltd.
  • AeroSpace Technology of Korea, Inc.
  • Air Busan Co., Ltd.
  • JIN AIR Co., Ltd.
  • AK Holdings, Inc.
  • Shoper Spolka Akcyjna
Last Updated on 2 Feb, 2023

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