Korean Air Q1 2026 Operating Profit Up 47% YoY; Asiana Merger Progressing

Consolidated Q1 2026 revenue: KRW 6.66 trillion, operating profit: KRW 517.4 billion (separate operating profit up 47.3% YoY).
Separate revenue: KRW 4.52 trillion, operating profit: KRW 516.9 billion, net income: KRW 242.7 billion.
Consolidated EPS: common KRW 330, preferred KRW 380.
Consolidated debt ratio: 373% (slight increase from 340% end-2025), net foreign currency debt: approx. USD 5.5 billion.
Merger with Asiana Airlines scheduled for Dec 16, 2026 (board approved on May 13).
Acquisition of 80% stake in Korean Air C&D Service planned (expected June 1).
Mid-to-long term dividend policy: up to 30% of separate net income (excluding one-off items) for FY2026. No share buyback/cancellation plan.
Sensitivity: KRW 10 change in FX impacts FX P&L by approx. KRW 55 billion; USD 1/bbl change in oil price impacts profit by approx. USD 30.5 million.
Floating-rate debt: approx. KRW 6.4 trillion; 1% change in interest rates impacts interest expense by approx. KRW 64 billion.