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Korean Air's quarterly cargo revenue drops amid volatile U.S. Tariffs

Korean Air announced on Friday that its cargo revenue fell by 4% for the second quarter. The company attributed this to market volatility caused by U.S. Tariff policies.

South Korea's biggest airline is one of Asia's most important cargo carriers. It has also benefited from the rise in e-commerce coming out of China over the past few years.

The airline's cargo revenue grew by 14% in the same quarter of last year. Since then, it has grown on an annual basis, and the airline attributed this to the increasing e-commerce volume.

Reports indicate that air cargo shipment volumes to the United States in Asia dropped by double-digits between May and June after the U.S. ended a tax exemption for low value packages coming from China at the beginning of the month. E-commerce shipments were particularly hard hit.

Korean Air stated that it had managed to navigate the market volatility brought on by U.S. Tariff Policies by diversifying their product offerings and focusing primarily on high-yield freight.

The list included semi-conductors and batteries, as well as seasonal perishables.

Korean Air reported that its quarterly revenue was the same as last year's quarter, which was 4 trillion won. However, operating profit dropped 3.5%, despite lower fuel costs, due to rising expenses, such as personnel, depreciation and other overheads.

After completing the $1.3 billion acquisition of Asiana Airlines, it became Asia's largest carrier.

(source: Reuters)