April 25, 2024

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[THE INVESTOR] Jeju Air has widely beaten market consensus in the second quarter and will continue its upward trajectory in the latter half, said Korea Investment and Securities on Aug. 4, maintaining a “buy” recommendation and 46,000 won (US$40.79) target price. 

Its revenue hiked 40.7 percent on-year to 228 billion won boosted by the strong demand for passenger services despite being a low season, and net profit soared 2447.1 percent to 16.2 billion won from a year ago when a one-time cost of returning aircraft occurred, explained analyst Choi Go-un.

With the up to 10-day long Chuseok holiday in October, it will be able to reap profits in the fourth quarter, a normally low season, forecast the analyst. As the seasonal deviation decreases, expectations are rising for its earnings prospects and the low-cost carrier will be able to maintain a stable profit growth momentum, added Choi.

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