Korean Air's net income rose 838 billion won in a quarter when operating profit rose about 45 billion

Revenue was about 4.0 trillion won a year earlier, backed out of the 26% rise ^[19][1], so the quarter added roughly 1.04 trillion won of sales ^[21] and, on a 12% gain in operating profit ^[3], roughly 45 billion won of operating profit ^[13]. Every 100 won of added sales produced about 4.3 won of operating profit ^[22]. The Korea Herald reported that the record came despite persistently high fuel costs ^[2].

Net income did something else. A year ago it was 91.9 billion won, about 284 billion won below operating profit ^[18]; this quarter it is 929.7 billion won, about 509 billion won above it ^[17] (Yonhap labels the net figure nonconsolidated ^[5]). That swing of roughly 793 billion won ^[16] is about 95% of the 838 billion won rise in net income ^[14][15], and none of it is operating profit. The prior-year operating figure is backed out of a rounded 12%, and only the net figure carries the nonconsolidated label, so the 95% carries both caveats.

We think most of the 793 billion won is the exchange rate, or rather the exchange rate on one day. The Korea Herald is the only one of the three accounts to name a mechanism, saying a lower won-dollar rate at quarter's end boosted net income ^[4]. The counter-thesis sits in Yonhap's version, which credits robust passenger and cargo demand alongside the stronger won ^[5], and the demand is real in the passenger and cargo lines ^[6][8]. But the operating line grew by only 45 billion won ^[13]. We would be wrong if the full filing assigns the bulk of the 793 billion won to something other than currency, such as a one-off gain or a tax item. The three accounts do not break out the non-operating items.

The fourth-quarter outlook in the company's statement is about fuel. "The prolonged Middle East war will likely keep fuel costs high in the fourth quarter," Korean Air said in a statement ^[9].