Korean Air CEO Walter Cho warns of the negative impact of US tariffs on the airline's popular routes, predicting a potential loss of up to $100 million in revenue due to decreased passenger levels on trans-Pacific and European routes. Despite the challenges, Cho remains optimistic, planning to maintain all US routes and reintroduce larger aircraft for summer travel, citing strong reservation data. The airline is focusing on cargo operations by exploring new markets like Europe and Canada due to potential tariff impacts on its significant cargo business. Cho also emphasizes continued investment in enhancing passenger experiences with cabin upgrades and maintaining spacious seating, seeing it as a long-term strategy for customer retention. The airline's recent merger with Asiana and a significant Boeing order reflect its commitment to growth and resilience amid uncertainties in the global trade environment.

Walter Cho, CEO of Korean Air, highlights the impact of US President Donald Trump's trade war on the airline, noting a subtle yet significant 5% downturn in passenger volume on trans-Pacific and European routes, potentially costing the airline $50 million to $100 million annually if the trend continues.

Korean Air plans to maintain its current US routes despite reduced traffic, with Cho expressing optimism based on strong summer reservation data and the belief that demand for travel will persist even with a 5-10% decline in traffic.

Cargo operations, which constitute about 40% of Korean Air's business, face challenges from potential tariff impacts, prompting the airline to seek new markets in Europe and Canada to maintain volume amidst trade disruptions.

Cho emphasizes continued investment in passenger experience upgrades, including cabin refurbishments and enhanced amenities, to align with global competitors and ensure long-term customer loyalty, despite economic uncertainties.

Korean Air's strategic moves, including a merger with Asiana Airlines and a major Boeing aircraft order, demonstrate its commitment to growth and strengthening ties with US manufacturing, even as the global trade environment remains uncertain.