April 20, 2024

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[THE INVESTOR] Jeju Air’s first-quarter earnings will be surprisingly high, said Samsung Securities on April 4, maintaining a “buy” recommendation and raising the target price to 62,000 won (US$58.71) from 49,000 won.

Revenue will rise 26 percent on-year to 302.6 billion won and operating profit by 53.1 percent to 41.7 billion won, estimated analyst Kim Yeong-ho.

The low-cost carrier’s robust earnings are based on strong demand for high-margin routes to Japan and Southeast Asia, explained the analyst. Its revenue passenger kilometers has risen 31 percent on-year and load factor has reached 91.4 percent, up 2.6 percentage points from the same period last year, he added.

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