[Click eStock] "Jeju Air Expected to Show Strong Q3 Performance"

Limited Capacity for Supply Increase

Daishin Securities forecasted on the 22nd that Jeju Air is expected to post solid results in the third quarter. They maintained a 'Buy' investment rating and a target price of 13,000 KRW.

Yang Ji-hwan, a researcher at Daishin Securities, stated, "On a consolidated basis, third-quarter sales are expected to increase by 12.4% year-on-year to 498.4 billion KRW, while operating profit is projected to decrease by 15.1% to 40.9 billion KRW, in line with market consensus."

Researcher Yang added, "We expect favorable external conditions due to the decline in oil prices and exchange rates in the third quarter, along with the peak season effect for international passengers, to result in solid performance. However, it appears that low-cost carriers (LCCs) experienced some impact from increased airline supply on the profitable Japan routes and reservation cancellations caused by the earthquake."

Yang anticipated that Jeju Air's capacity expansion potential is limited, leading to somewhat sluggish growth compared to market expansion. He analyzed, "Due to issues such as the Boeing strike, the number of aircraft scheduled for delivery in the second half of 2024 has decreased from 2-3 to 1, limiting the capacity increase potential in the fourth quarter as well."