UPDATE 1-Korean Air Q4 profit misses f'cast, eyes strong 2011

* Q4 operating profit 189 bln won vs 253 bln forecast

* Aims to grow op profit 14 pct in 2011 as demand advances

SEOUL Jan 27 (Reuters) - Korean Air Lines Co Ltd (003490.KS), the world's top freight carrier among commercial airlines, posted a smaller-than-expected operating profit on Thursday amid heightened geopolitical risks and higher fuel costs but set a strong full-year target on expected growth in demand.

South Korea's No.1 airline is expected to see an improvement in profits this year on upbeat prospects for passenger and cargo traffic.

The company earned an operating profit of 189 billion won ($168.9 million) in the quarter ended December, missing a 253 billion won consensus forecast from Thomson Reuters I/B/E/S.

The company made an operating profit of 154 billion won in the year-ago quarter.

The SmartEstimate for operating profit from StarMine, which rates analysts based on past accuracy and timeliness, was 221 billion won.

North Korea's Nov. 23 artillery attack on a South Korean island, which raised tensions on the peninsula to their highest levels since the 1950-53 Korean War, hurt travel, analysts said. Higher oil prices also drove up fuel costs for the airline.

The two Koreas are now trying to calm tensions via dialogue.

The South Korean flag carrier said it expects total 2011 revenues and operating profit to exceed 2010 on continuing growth in both passenger and cargo demand, while expanding its fleet.

Korean Air will receive delivery of five Airbus A380 superjumbos this year, with the first flight planned for June.

The company set a 2011 target of a 14 percent jump in operating profit to 1.3 trillion won versus a year ago.

Also, it aims for a 9 percent increase in sales to 12.5 trillion won this year, the airline added. ($1=1119.0 Won) (Reporting by Ju-min Park; Editing by Jacqueline Wong)