Korean Air completes Smart Cargo Terminal at Incheon

Korean Air has finished modernising its cargo terminal at Incheon International Airport. The airline has opened a fully integrated ‘Smart Terminal’ with advanced automated logistics systems.

The project ran from June 2025 to September 2026. It added automated technology across terminal handling operations, and cargo handling continued without interruption throughout.

The core of the upgrade is a fleet of Automated Guided Vehicles (AGVs) and new Elevating Transfer Vehicles (ETVs). Korean Air expanded the bypass infrastructure from a single line to dual automated transfer lines linked to the new ETVs. This raised the terminal’s hourly Unit Load Device (ULD) processing capacity from 18 to 30 units. Total cargo handling capacity is expected to rise by more than 25 percent. The airline is also expanding its specialised facilities for high-yield special cargo.

Automating heavy equipment cuts down on manual handling, and the infrastructure upgrades improve the working environment and operational precision. Korean Air sees the terminal, along with its digital integrations, sustainability initiatives and next-generation fleet orders, as strengthening its position in the global air cargo market.

“This renovation is an essential step to proactively respond to the rapidly changing global logistics environment by upgrading equipment and integrating smart technologies,” a Korean Air representative said.

With Incheon complete, the carrier is now modernising its cargo terminal at John F. Kennedy International Airport (JFK) in New York, with completion targeted for 2027. 

Cargo revenue climbs on AI-driven demand
The terminal opens as Korean Air’s cargo business is performing strongly. Cargo revenue in Q3 2026 was KRW 1.4323 trillion (US$1.08 billion), up KRW 365.6 billion (US$277 million) year-on-year. That is an increase of about 34 percent. Steady demand for high-value AI and semiconductor components drove the growth. The airline also protected profitability by adjusting capacity as demand shifted between regional markets.

Korean Air expects fuel costs to stay high in Q4 because of the prolonged conflict in the Middle East. The cargo division plans to deploy capacity flexibly to make the most of the traditional year-end peak and continued demand from the AI and semiconductor sectors.

Across the company, Korean Air posted record quarterly revenue of KRW 5.0448 trillion (US$3.82 billion) in Q3 2026, despite sustained high fuel prices. That is up KRW 1.0363 trillion (US$784 million) year-on-year. Operating profit rose KRW 44.9 billion (US$34 million) to KRW 421.2 billion (US$319 million).

Asiana integration set for December
Korean Air is aligning service protocols across its expanding global network ahead of its merger with Asiana Airlines on December 17. The merger is the final step in an integration that began when Korean Air acquired Asiana shares on December 12, 2024.

Through the merger, Korean Air aims to combine the resources of both companies to compete globally as a Full-Service Carrier (FSC), and to raise corporate and shareholder value. Bringing the two airlines together means close coordination across aircraft operations, maintenance and operating systems, and passenger safety is the top priority. The airline has planned the timing carefully to avoid system errors or operational disruptions at the changeover. After two years of preparation, it chose December 2026 as the best time to complete the merger.

What the merger means for cargo
The merger makes Korean Air Korea’s dominant full-service cargo carrier, but without Asiana’s freighter business. To preserve competition, regulators required Asiana’s cargo division to be divested.

Asiana transferred 11 freighters, made up of 10 Boeing 747Fs and one 767F, plus related staff and contracts, to Air Incheon, now operating as Air Zeta, for KRW 470 billion (US$356 million). The carve-out stops Korean Air from combining two large Korean freighter operations on Europe–Korea routes, where the European Commission had raised concerns about dominance.

Korean Air keeps its own freighter fleet, belly capacity, Incheon hub and customer contracts. It can still benefit from a larger passenger network, more belly-hold space, slots, traffic rights and scale at Incheon. Industry reports expect the combined group’s cargo capacity to rise by more than 10 percent.

Air Zeta takes over Asiana’s long-haul freighter platform and plans to expand in North America, Europe, e-commerce and specialised cargo. That makes it a new independent Korean competitor.