Asiana Airlines recorded its highest first-quarter revenue in company history, reaching 1.743 trillion won ($1.29 billion) in Q1 2025, up 6.7% year-on-year, despite continuing to operate at a loss.
The South Korean carrier, now operating as a subsidiary of Korean Air following December’s $1.3 billion acquisition, narrowed its operating deficit to 7.9 billion won ($5.9 million), an improvement of 23.3 billion won from the previous year.
Passenger revenue climbed 6.1% to 1.2017 trillion won, bolstered by proactive flight increases during the Lunar New Year holiday period. Cargo operations contributed 370.9 billion won, rising 5.2% as shippers accelerated deliveries ahead of potential U.S. tariff hikes.
The company cited increased maintenance expenses and unfavorable currency-driven fuel costs as factors preventing a return to profitability, though cost-cutting initiatives helped reduce the deficit.
Looking ahead to Q2, Asiana plans to launch night flights to New York, deploy A380 aircraft strategically, and establish an Eastern European network hub in Prague. The airline will also increase frequencies to Honolulu and Istanbul.
The results come as Asiana approaches a critical transition period. Korean Air is expected to submit plans to merge both airlines’ frequent flyer programs to Korea’s Fair Trade Commission by June 2025, with the Asiana brand scheduled to be phased out completely by January 2027.
