April 26, 2024
Stocks & Bonds
[EQUITIES] ‘Korean Air’s Q1 profit to decline’
[THE INVESTOR] Despite the growth in passenger traffi, Korean Air’s first-quarter profit will decline due to the oil price hike, said Hana Financial Investment on Feb. 10.
Although the demand for passenger and freight services will grow, the fuel costs will increase due to oil price rise, and its operating profit will fall 10.9 percent on-year to 288.1 billion won (US$249.72 million), said analyst Shin Min-seok.
There might be heightened competition in short-distance routes but it will maintain dominance in long-distance routes. Its freight sector also has been on the upturn on the back of the strong information and technology industry since the fourth quarter last year. It will beat market estimates this year, said the analyst, maintaining a “buy” recommendation and 38,000 won target price.
By Hwang You-mee (glamazon@heraldcorp.com)
Although the demand for passenger and freight services will grow, the fuel costs will increase due to oil price rise, and its operating profit will fall 10.9 percent on-year to 288.1 billion won (US$249.72 million), said analyst Shin Min-seok.
There might be heightened competition in short-distance routes but it will maintain dominance in long-distance routes. Its freight sector also has been on the upturn on the back of the strong information and technology industry since the fourth quarter last year. It will beat market estimates this year, said the analyst, maintaining a “buy” recommendation and 38,000 won target price.
By Hwang You-mee (glamazon@heraldcorp.com)
