Asiana Airlines Inc. (020560)

As of the end of 2025, Asiana Airlines operated 68 passenger aircraft, serving 6 cities in Korea and 53 cities in 22 countries overseas. As the upward trend in international passenger demand continued in 2025 following the previous year, the Company expanded its international route operations accordingly. However, due to factors such as continued intensification of supply competition, profitability declined, and as of 2025 international passenger revenue recorded KRW 4,286.6 billion, down 1% year-on-year, while total passenger revenue recorded KRW 4,569.6 billion. The cargo business is a business that generates revenue through cargo transport utilizing freighters and the belly space of passenger aircraft. Effective August 1, the Company transferred its freighters and 21 international cargo routes to Air Zeta (formerly Air Incheon), and it continues to operate a cargo business utilizing the belly space of passenger aircraft. Due to the transfer of freighter routes, this year's cargo revenue recorded KRW 958.4 billion, down 44% year-on-year. The Company will maximize operational efficiency by operating a passenger fleet that includes next-generation aircraft with excellent fuel efficiency (A350, A321NEO), while maintaining a solid safe-operations system to sustain a stable business foundation. In addition, the Company will enhance the profitability of its passenger and cargo businesses through proactive market responses, including strengthening cooperation with global airlines and developing its network through new route launches. 2. Major Products and Services A. Information on Major Products or Services (Unit: KRW 100 million) Classification / Main Business / 2025 (Sales / Ratio (%)) / 2024 (Sales / Ratio (%)) / 2023 (Sales / Ratio (%)) Asiana Airlines / Air transport Domestic passenger routes / 2,829 / 4.6% / 3,045 / 4.3% / 3,526 / 5.4% International passenger routes / 42,866 / 69.2% / 43,418 / 61.5% / 39,367 / 60.3% Cargo routes / 9,584 / 15.4% / 17,195 / 24.4% / 16,072 / 24.6% Other / 6,690 / 10.8% / 6,934 / 9.8% / 6,357 / 9.7% Total / 61,969 / 100.0% / 70,592 / 100.0% / 65,321 / 100.0% Air Busan / Air transport Domestic passenger routes / 1,301 / 15.6% / 2,025 / 20.4% / 2,243 / 25.2% International passenger routes / 6,330 / 76.0% / 7,165 / 71.2% / 6,008 / 67.5% Cargo routes / 7 / 0.1% / 7 / 0.1% / 6 / 0.1% Other / 688 / 8.3% / 843 / 8.4% / 648 / 7.3% Total / 8,326 / 100.0% / 10,068 / 100.0% / 8,905 / 100.0% Air Seoul / Air transport Domestic passenger routes / 230 / 8.0% / 249 / 7.6% / 430 / 13.8% International passenger routes / 2,418 / 83.4% / 2,748 / 84.0% / 2,445 / 78.6% Cargo routes / 7 / 0.2% / 5 / 0.2% / 4 / 0.1% Other / 243 / 8.4% / 267 / 8.2% / 230 / 7.4% Total / 2,898 / 100.0% / 3,269 / 100.0% / 3,109 / 100.0% Asiana IDT / IT services Development and implementation / 343 / 17.7% / 500 / 25.8% / 509 / 27.0% Computing product sales / 269 / 13.8% / 223 / 11.5% / 207 / 11.0% Operation and maintenance / 1,329 / 68.5% / 1,217 / 62.7% / 1,168 / 62.0% Total / 1,941 / 100.0% / 1,940 / 100.0% / 1,884 / 100.0% Asiana Airport / Air transport support Ground handling, etc. / 2,477 / 97.1% / 2,367 / 96.2% / 2,043 / 96.3% Other / 73 / 2.9% / 94 / 3.8% / 78 / 3.7% Total / 2,550 / 100.0% / 2,461 / 100.0% / 2,121 / 100.0% Asiana T&I / Other business General merchandise wholesale / 126 / 100.0% / 124 / 100.0% / 111 / 100.0% Total / 126 / 100.0% / 124 / 100.0% / 111 / 100.0% B. Status of Price Changes for Major Products or Services Item / 2025 / 2024 / 2023 Air transport / Asiana Airlines Passenger (KRW/person) Domestic / 59,954 / 73,689 / 73,315 International / 356,822 / 383,829 / 451,023 Cargo (KRW/kg) Domestic / 249 / 249 / 240 International / 2,834 / 3,339 / 3,259 Air Busan Passenger (KRW/person) Domestic / 50,571 / 57,578 / 58,266 International / 152,416 / 159,900 / 164,578 Air Seoul Passenger (KRW/person) Domestic / 48,608 / 56,322 / 57,876 International / 143,940 / 149,487 / 162,412 Note 1) The per-passenger fare for the above air transport segment is stated as figures including the number of mileage (free) passengers from 2025. Note 2) Price changes in cargo transport are stated on the basis of cargo selling prices. Note 3) The information/communications, air transport support service, and other segments cannot be stated due to the provision of different services according to business characteristics. * Calculation basis - Passenger: Total revenue (including sales commissions and other commissions) / Total number of passengers boarded - Cargo: Total revenue (including sales commissions and other commissions) / Total kg sold 3. Raw Materials and Production Facilities A. Raw Material Status by Company (1) Asiana Airlines Inc. (Unit: USD thousand) Segment / Purchase Type / Item / Specific Use / 2025 / 2024 / 2023 / Remarks Air transport / Raw materials / Aircraft engines and others / Parts to support aircraft maintenance / 404,459 / 244,110 / 288,036 / Airbus and others / Merchandise / Jet fuel / Aircraft fuel / 1,335,385 / 1,628,549 / 1,624,729 / GS Caltex, SK Incheon Petrochem, and others / Total / 1,739,844 / 1,872,659 / 1,912,765 / - * Change in compilation basis from 2025: Changed from the amount of purchases for aircraft maintenance during the period to the basis of the purchase ORDER amount placed. (2) Air Busan Inc. (Unit: KRW million) Segment / Purchase Type / Item / Specific Use / 2025 / 2024 / 2023 / Remarks Air transport / Merchandise / Jet fuel / Aircraft fuel / 225,220 / 248,075 / 224,592 / SK Energy, GS Caltex, and others / Total / 225,220 / 248,075 / 224,592 / - (3) Air Seoul Inc. (Unit: KRW million) Segment / Purchase Type / Item / Specific Use / 2025 / 2024 / 2023 / Remarks Air transport / Merchandise / Jet fuel / Aircraft fuel / 85,595 / 94,218 / 86,547 / Hyundai Oilbank, SK Energy, and others / Total / 85,595 / 94,218 / 86,547 / - (4) Asiana IDT Inc. (Unit: KRW million) Segment / Purchase Type / Item / Specific Use / 2025 / 2024 / 2023 / Remarks Information/communications business / Service cost / Operation and maintenance cost / Comprehensive system management, etc. / 79,804 / 73,065 / 69,193 / - / Consulting/SI cost / System integration implementation, etc. / 23,239 / 37,980 / 42,659 / - / Merchandise / Merchandise cost / Computing product cost / 22,196 / 19,638 / 18,621 / - / Total / 125,239 / 130,683 / 130,473 / - B. Trends in Price Changes of Major Raw Materials (1) Asiana Airlines Inc. (a) Jet fuel (Unit: US Cents / USG) Classification / 2025 / 2024 / 2023 Jet fuel Domestic / 213.84 / 237.51 / 256.87 Overseas / 239.87 / 259.60 / 292.76 * Calculation basis: Total fueling amount / Total quantity used * Major price change factors: Fluctuations in international crude oil prices (b) Aircraft maintenance support parts (Unit: USD thousand) Classification / 2025 / 2024 / 2023 Aircraft maintenance support parts / 404,459 / 244,110 / 288,036 * Calculation basis: Based on the amount of purchase ORDERs placed for aircraft maintenance during the period * Major price change factors: Price increases by parts suppliers, exchange rate fluctuations, etc. (2) Air Busan Inc. Classification / 2025 / 2024 / 2023 Jet fuel Domestic (KRW/USG) / 3,153 / 3,337 / 3,528 Overseas (USC/USG) / 253 / 269 / 288 * The above figures are calculated by dividing the purchase amount (KRW or USC) by the jet fuel purchase quantity (USG). (3) Air Seoul Inc. Classification / 2025 / 2024 / 2023 Jet fuel Domestic (KRW/USG) / 3,069 / 3,234 / 3,414 Overseas (USC/USG) / 264 / 278 / 290 * The above figures are calculated by dividing the purchase amount (KRW or USC) by the jet fuel purchase quantity (USG). (4) Asiana IDT Inc. For items such as services, servers, network equipment, and various software, the specifications differ each time according to the customer's request at the time of purchase, making appropriate price comparison of individual raw materials difficult. In addition, the labor cost of the technical personnel deployed in service performance varies according to the technology required by the customer, making consistent comparison difficult. (5) Asiana Airport Inc. [The portion of the source text that materially affects the profitability of this business segment was truncated in the original filing.]