[Featured Stock] Jeju Air Rises on Strong Q3 Performance... Expectation of Dividend Resumption Next Year

Jeju Air is showing strength in early trading, buoyed by strong third-quarter results.

As of 9:43 a.m. on the 6th, Jeju Air is trading at 9,850 KRW on the KOSPI, up 280 KRW (2.93%).

Jeju Air announced in a disclosure yesterday that its provisional third-quarter standalone sales reached 460.2 billion KRW, a 7.5% increase compared to the previous quarter (427.9 billion KRW). Both operating profit and net income turned positive compared to the previous quarter.

Expectations have also risen in the securities industry. Hana Securities raised Jeju Air's target price from 11,000 KRW to 12,000 KRW on the same day.

Researcher Andohyun from Hana Securities said, "Although international fares decreased by 3% year-on-year, they increased by 10% compared to the previous quarter, which is positive as it indicates a rebound from the previous quarter." He added, "The implementation of visa-free entry for China is expected to improve the load factor on China routes and have a more positive effect on profitability rather than sales."

Researcher Andohyun also noted, "Jeju Air announced that it will convene an extraordinary general meeting in December to propose converting capital reserves into retained earnings." He pointed out, "If this agenda is approved, Jeju Air is likely to resume dividends in 2025."