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Delta-Korean Air JV shows strong start
March 8th 2019
Korean Air pleased with early result only seven months in. Read More »
Korean Air is only seven months into its joint-venture with Delta Air Lines but is encouraged by early results. The JV was implemented on 1 May 2018, and full year 2018 Americas performance showed a 6.5% yield improvement and 3.7ppt load factor increase on a 2.5% ASK reduction.
Korean Air’s trans-pacific network appears to have out-performed. Its 2018 system load factor increased only 1.1ppt while yield grew 4.8%. JV partner Delta posted a 2.5% yield increase in 4Q2018. Delta said Japan and Korea saw mid to high single-digit unit revenue growth, and that Korea posted the strongest performance. United Airlines, which also has a large trans-pacific network, posted a 3.2% improvement in yield.
Although the JV was implemented for only part of 2018, the launch was strong because Delta and Korean aligned as much as they could before the official commencement.
In 2019, Korean Air expects to grow Americas revenue by 5.2%. Southeast Asia revenue is forecast to grow 5.7%. Southeast Asia is tied to Korean Air's North America network because of transfer traffic. Korean Air did not disclose capacity projections but Korean on 12 April is starting a five weekly Seoul Incheon-Boston 787-9 service.
