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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 2018 KRWUSD
Revenue13,020.27B11,831.04M
Gross Profit1,952.29B1,773.97M
Operating income640,652.97M582.13M
Income before tax-208,683.13M-189.62M
Net income-193,044.95M-175.41M
EBITDA2,382.32B2,164.73M
Diluted EPS-2,011.81-1.82
Dividends Per Share2500.22
Total Assets25,579.65B22,924.94M
Total liabilities22,547.87B20,207.80M
Total equity2,908.72B2,606.84M
Operating cash flow2,205.08B2,003.67M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 11,909.74B 11,544.83B 11,731.85B 12,092.21B 13,020.27B
Gross Profit 1,488.87B 1,990.65B 2,246.86B 2,059.29B 1,952.29B
Operating income 395,325.88M 840,388.36M 1,105.51B 939,999.78M 640,652.97M
Income before tax -290,848.31M -503,848.17M -605,132.62M 1,121.69B -208,683.13M
Net income -203,372.70M -405,115.44M -564,881.98M 791,510.24M -193,044.95M
EBITDA 1,988.35B 2,491.31B 2,857.02B 2,633.01B 2,382.32B
Diluted EPS -7,296.79 -7,556.10 -7,245.93 8,640 -2,011.81
Dividends Per Share 0 0 0 250 250
Total Assets 23,465.72B 24,180.35B 23,956.53B 24,648.67B 25,579.65B
Total liabilities 21,264.56B 21,681.31B 22,082.18B 20,897.57B 22,547.87B
Total equity 2,090.94B 2,387.11B 1,760.68B 3,629.43B 2,908.72B
Operating cash flow 1,397.67B 2,342.28B 2,383.56B 2,315.88B 2,205.08B
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 11,313.97M 10,200.38M 10,112.01M 10,696.24M 11,831.04M
Gross Profit 1,414.39M 1,758.83M 1,936.63M 1,821.56M 1,773.97M
Operating income 375.55M 742.52M 952.87M 831.48M 582.13M
Income before tax -276.29M -445.17M -521.58M 992.20M -189.62M
Net income -193.19M -357.93M -486.88M 700.13M -175.41M
EBITDA 1,888.88M 2,201.18M 2,462.54M 2,329.05M 2,164.73M
Diluted EPS -6.93 -6.67 -6.24 7.64 -1.82
Dividends Per Share 0 0 0 0.22 0.22
Total Assets 21,348.97M 20,622.02M 19,834.85M 23,024.30M 22,924.94M
Total liabilities 19,346.37M 18,490.73M 18,282.98M 19,520.40M 20,207.80M
Total equity 1,902.32M 2,035.82M 1,457.76M 3,390.25M 2,606.84M
Operating cash flow 1,327.75M 2,069.51M 2,054.45M 2,048.53M 2,003.67M

Valuation Measures

Dec 2018
PER--
ROA-0.76%
ROE-5.90%
Operating margin4.92%
Profit margin-1.48%

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. (29.9%)
  • National Pension Service of Korea (10.0%)
  • Jungseok-Inha School's Foundation (2.7%)
  • Korean Air Lines Co. Ltd. Employee Stock Ownership Associate (2.1%)
  • Dimensional Fund Advisors LP (1.6%)
  • The Vanguard Group, Inc. (1.3%)
  • BlackRock Fund Advisors (1.2%)
  • Norges Bank Investment Management (0.8%)
  • Samsung Asset Management Co., Ltd. (0.7%)
  • Jungseok Logistics Science Foundation (0.4%)

Contact Details

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Competitors

  • Asiana Airlines Inc.
  • China Airlines Ltd.
  • PT Garuda Indonesia (Persero) Tbk Class B
  • El Al Israel Airlines Ltd
  • JEJUAIR CO., LTD.
  • PAL Holdings, Inc.
  • AeroSpace Technology of Korea, Inc.
  • JIN AIR Co., Ltd.
  • LIG Nex1 Co., Ltd.
  • HANJIN KAL Corp.
  • AK Holdings, Inc.
  • Nippon Yusen Kabushiki Kaisha
Last Updated on 13 Dec, 2019

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