April 27, 2024

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[THE INVESTOR] Asiana Airlines’ earnings in the first quarter was surprisingly high, said KB Investment and Securities on May 4, maintaining a “buy” recommendation and raising the target price up 9.4 percent to 7,000 won (US$6.50).

Its operating profit in the period reached 64.3 billion won, up 144 percent on-year and the highest in three years, beating market expectations, said analyst Kang Seong-jin. 

Its reasonable price policy boosted international passenger travel volume to record 85.5 percent that led to the earnings surprise, explained the analyst. 

Uncertainties over liquidity, which has been weighing down the stock price, has been completely cleared as it has completed issuing 150 billion won corporate bonds. It sold 323 billion won worth assets, while issuing 300 billion won asset-backed securities and 220 billion won perpetual bonds, said Kang.

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