April 26, 2024

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[THE INVESTOR] Jeju Air has posted an earnings surprise in the first quarter and is setting precedents for low-cost carriers, said Mirae Asset Daewoo on April 27, raising the target price to 42,000 won (US$37.14) from 40,000 won. 

Considering that it has been growing at an average 27 percent over the past three years, its stock price is likely to rise further, said analyst Ryu Je-hyeon. 

It widely beat market expectations as it concentrated on the international routes while occupancy rate and sales price both improved, said the analyst. 

Additional baggage charge and food service doubled and led the revenue growth, accounting for close to half of the operating profit, pointed out Ryu.
As it settles down, the negotiation leverage with service providers is rising, and will continue to do so, added the analyst. 

By Hwang You-mee (glamazon@heraldcorp.com)