[Click eStock] "Jeju Air, Expected Record-Breaking Performance... Travel Demand Up"

KB Securities Report

KB Securities forecasted that Jeju Air will record its highest-ever performance this year. The investment rating was upgraded from 'Neutral' to 'Buy', and the target price was adjusted from the previous 12,000 KRW to 17,000 KRW, an increase of 41.7%.

On the 27th, Kang Sung-jin, a researcher at KB Securities, explained, "Jeju Air's expected operating profit this year is 156.7 billion KRW, marking a successful turnaround to profitability. This is the highest operating profit ever and exceeds market expectations by 15.4%."

Researcher Kang cited the following investment points for Jeju Air: ▲ highest-ever passengers per flight ▲ increase in passenger unit price due to domestic passenger service supply shortage ▲ aircraft acquisition plans.

Kang predicted, "With strong international passenger demand and new aircraft acquisitions, the average annual number of operating passenger aircraft will increase by 8.6% compared to the previous year, and international passenger transport volume will increase by 364.8% compared to the previous year."

He added, "The high exchange rate has increased the cost burden of long-distance travel, and the resumption of flights on China routes has been delayed. The concentration of Korean travelers' demand on Japan and Southeast Asia, where low-cost carriers like Jeju Air operate many routes, also contributed to the performance improvement."