Jeju Air’s earnings beat market expectations in the fourth quarter last year, said KTB Investment and Securities on Feb. 7, raising the target price to 48,000 won (US$44.40) from 46,000 won.
Boosted by outperforming passenger service on both domestic and international routes, its operating profit in the period soared 316 percent on-year to 17.7 billion won, said analyst Lee Han-jun.
The strong won will bolster demand for outbound tourism in Korea this year, while inbound tourism from China may benefit the low-cost carrier, forecast the analyst.
Its operating profit this year will rise 19.35 percent from 2017 to 121.2 billion won, even assuming that average jet fuel price this year will be at the level of 80 dollars per barrel, said Lee maintaining a “buy” recommendation.
By Hwang You-mee (email@example.com