The airline industry is one of the industries that were the most severely affected by the spread of COVID-19. As the travel demand was plunged, some airlines declared bankruptcies while others took strategies to cut the expenditures and revise the revenue stream (from the passenger flights to air freight). In this study, we assess the performance of Korean Air by examining the economic cost of COVID-19 on the overall airline industry and discussing how airlines coped with the plunged demands. Additionally, we examine the effect of external factors including government policies on each airline’s performance. In the end, the study highlights the significance of flexibility and agility in business decisions, especially when it comes to the decisions for risk management. In doing so, this study addresses the question, what is the most critical factor for business strategies that contribute to successful risk management?