1. Korea Airport Q2 Earnings: Key Highlights

Korea Airport reported revenue of KRW 160.3 billion, operating profit of KRW 11.5 billion, and net profit of KRW 9.5 billion in Q2 2025. While revenue slightly increased compared to the previous quarter, both operating and net profit decreased. This can be attributed to increased selling, general, and administrative expenses, as well as the impact of rising exchange rates and volatile oil prices.

2. Reasons for Underperformance: External and Internal Factors

Externally, rising exchange rates and volatile oil prices negatively impacted Korea Airport’s profitability. Internally, increased selling, general, and administrative expenses were a primary factor in the decline in operating profit. The high dependence on sales to Korean Air and its subsidiaries also presents a potential risk.

3. Investment Risks and Opportunities: A Balanced Perspective

In the short term, declining earnings and macroeconomic uncertainties could weigh on the stock price. However, new business ventures, such as the rental platform and expansion of Japanese ground handling operations, offer potential long-term growth opportunities. The company’s ongoing commitment to strengthening ESG management is also a positive factor.

4. Action Plan for Investors: Information Gathering and Analysis

The current investment recommendation is ‘Hold.’ Investors should closely monitor the Q3 earnings announcement, the performance of new businesses, cost management efficiency, and macroeconomic variables to inform their investment decisions.