Korean Air diversifies portfolio into aerospace sector

Headquarters of Korean Air in Seoul / Courtesy of Korean Air

Korean Air will diversify its business portfolio into the aerospace sector, as part of its efforts to secure next-generation growth engines beyond the firm’s conventional passenger and cargo business, the flag carrier said Monday.

The airline’s expansion into the sector is aimed at elevating its global competitiveness even after the firm's ongoing “chemical” or operational takeover of Asiana Airlines. Korean Air is set to finalize the process for the acquisition of Asiana by the end of 2026 and launch a combined mega-carrier.

In particular, Korean Air is expanding its footing in the development of satellites and space rockets, as evidenced by increasing sales in its aerospace business. According to data from Korean Air, it chalked up sales of 491 billion won ($350 million) in the area in 2022. The figure has since jumped into a steady growth track until 2024, when the figure reached 593 billion won.

Korean Air's 787 Dreamliner / Courtesy of Korean Air

The company is also solidifying its position as Korea’s only fully-integrated aerospace firm, handling development of aircraft systems, satellites, launch vehicles and even unmanned aerial vehicles. On the global level, Korean Air is the only airline that operates not just aircraft, but also manufactures them.

Korean Air’s technical expertise has been proven across the globe. The airline entered the international aerospace market in 2005, after signing a joint development agreement with Boeing for the latter’s 787 Dreamliner. Korean Air has since engaged in the production of key components for various other Boeing aircraft, such as the 747, 717, 737, 767, 777 and 747-8.

Korean Air specializes in manufacturing core aircraft structures, such as the raked wingtips and flag support fairing.

Korean Air’s air launch systems are displayed during a military symposium in Seoul, June 12. Courtesy of Korean Air

The airline also produces both the forward and rear cargo doors and bulk doors for the A350. They are considered high-precision composite structures crucial for in-flight safety. These components are entirely designed and developed in-house, which demonstrates the airline’s technological expertise.

In July, the airline made headlines for showcasing innovative technologies, such as an artificial intelligence (AI)-based chatbot for predictive aircraft maintenance and hybrid drones for product delivery during the 2025 World Smart City Expo.

Korean Air is now stepping into the new space era. The company has contributed to major milestones in Korea’s space industry, including the assembly and launch of operations for Naro, the nation’s first space launch vehicle.

Korean Air's booth during the 2025 World Smart City Expo held in the nation's southeastern port city of Busan in July. Courtesy of Korean Air

The airline was named the only Asian participant for Airbus’ international research project — Wing of Tomorrow — and delivers prototype wingtip components made with innovative fabrication techniques.

Korean Air is also joining the global drive for carbon neutrality to become an environmentally responsible company.

Toward the end, the airline focuses on developing high-speed, low-cost and carbon-reducing technologies, such as AI-driven automated assembly systems, with a view to improving manufacturing precision and assembly efficiency in a more eco-friendly manner.

An image of Korea's satellite navigation system / Courtesy of Korean Air

Korean Air is also actively expanding its presence into the urban air mobility (UAM) space, widely regarded as a future cornerstone of smart urban infrastructure. In 2023, the airline formed a consortium with Hyundai Motor Group and a group of private and state-run firms to prepare for the commercialization of UAM and build a relevant infrastructure.

The company also signed a partnership with the U.S.-based advanced air mobility firm Supernal in October 2023 to jointly build and commercialize the operations ecosystem for UAM.

Korean Air is teaming up with the Korea Aerospace Research Institute to develop structures for satellites under the Korean Positioning System (KPS) project. KPS is often referred to as the Korean GPS, which will consist of eight satellites in orbit, offering ultraprecise positioning and navigation services for Korea.