[Featured Stock] Jin Air Rises 5%... Expected Benefits from Korean Air and Asiana Merger

Hana Securities Anticipates Synergy Effects with Jin Air and Air Busan
Positive Performance Outlook Due to International Route Growth and Fuel Cost Relief

Jin Air rebounded by 5%. It appears that buying interest flowed in due to expectations of benefits from the merger of Korean Air and Asiana Airlines.

As of the 15th, Jin Air is trading at 10,590 KRW, up 510 KRW (5.06%) from the previous trading day. It reached a high of 10,740 KRW early in the session and is currently undergoing a slight correction. After falling to 10,070 KRW during the previous day’s session, threatening the 10,000 KRW level, Jin Air’s stock price is now pointing upwards again.

Hana Securities forecasted that Jin Air would benefit from the merger of Korean Air and Asiana Airlines. Andohyeon, a researcher at Hana Securities, said, “Since Jin Air and Air Busan have different hub airports and many complementary routes, the network expansion synergy could be greater than that of a merger between large full-service carriers (FSCs).” He also noted, “Concerns about a peak in earnings have eased, and with additional momentum (upside potential), it is an opportune time to increase exposure.”

Jin Air’s sales in the third quarter of this year were 364.6 billion KRW, and operating profit was 40.2 billion KRW, representing increases of 13% and 23% respectively compared to the same period last year. In particular, international route sales increased by 15% year-on-year to 266 billion KRW. Among the routes, the Japanese route continued its steady growth, and the Chinese route’s sales share rose to 9%. The easing of fuel cost burdens is also positive for Jin Air.