Korean Air Lines striving to win confidence from shareholders and investors following a series of face-losing events on Tuesday vowed to more than double its income and nearly halve its debt over the next five years to return more profits to shareholders.

Korean Air in a regulatory filing on Tuesday released its five-year business plan that includes achieving an operating profit of 1.7 trillion won ($1.5 billion) on revenue of 16 trillion won and reducing debt ratio to 395 percent by 2023.

The airliner reported best-ever revenue of 12.7 trillion won for 2018, but its operating profit plunged 27.6 percent on year to 692.4 billion won, while debt ratio stood at 699 percent.

Shares of Korean Air were lifted to finish 2.71 percent higher at 36,000 won apiece on Wednesday.

The company said it will expand passenger flight service network and improve operational efficiency as well as actively explore opportunities for cargo service in emerging markets like Vietnam, India, and Mexico. Also, it aims to up its efforts in developing aerospace business.

It vowed to improve financial health by better managing debts, expanding assets, and actively prepare against external risks such as unfavorable changes in global oil price and foreign exchange rates. It expects such actions would help upgrade its credit rating to A+ by 2023 from current BBB+.

The airline also pledged to make corporate governance more transparent and bolster shareholders’ value. It has added audit committee within board of directors for better monitoring and plans to convene shareholders’ meeting on regular basis.

The company’s five-year plan was prepared on demand from Seoul-based activist fund KCGI to reform its business management. KCGI owns an 8 percent stake in Hanjin KAL, the holding entity for Hanjin Group companies that include Korean Air Lines. The activist fund had announced to exercise appropriate checks and restraint over important management affairs of the company as a major shareholder after the transport giant came under fire for a series of scandals and allegations for unfair and illegitimate attempts by owner family members.

By Hwang Soon-min and Cho Jeehyun

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