Seoul:KAI, the only aircraft manufacturer in South Korea, announced a significant drop in its third-quarter net profit, despite experiencing growth in sales and operating profit.

According to Yonhap News Agency, KAI's net profit for the July-September period decreased by 51.3 percent from the previous year, amounting to 19 billion won (approximately US$14.2 million), as stated in a regulatory filing by the company.

The company reported a 31.9 percent increase in operating profit, reaching 79.4 billion won, and a 51.6 percent surge in sales, totaling 1.06 trillion won. KAI attributed the growth in sales and operating profit to robust aircraft exports and the transition of development projects into mass production phases.

Domestic sales saw a significant rise of 83 percent year-on-year, amounting to 493.7 billion won, largely due to deliveries under the KF-21 fighter jet production program intended for the South Korean Air Force. Additionally, deliveries of the Light Armed Helicopter (LAH) to the South Korean Army are expected to resume in the fourth quarter, as engine supply issues have been resolved.

The company's aircraft export revenue increased by 78 percent year-on-year, totaling 291.4 billion won. This growth was driven by FA-50 light combat aircraft projects in Malaysia, Poland, and the Philippines, alongside KT-series trainer aircraft for Indonesia. Aerostructure revenue reached 262.8 billion won, bolstered by strong international demand.

KAI's order backlog was reported at 27.3 trillion won by the end of September. The company anticipates accelerated sales growth in the fourth quarter, supported by increased KF-21 production, the resumption of LAH deliveries, and FA-50 deliveries to Malaysia.