[THE INVESTOR] Jeju Air has lost momentum as the number of services to Japan was cut following a natural disaster, said Kiwoom Securities on Sept. 12, lowering the target price to 53,000 won (US$47.06) from 60,000 won.
Most of low-cost carriers rely more on Japanese routes than full-service carriers, and services to Osaka will be limited until mid-September, said analyst Lee Chang-heui.
Japan suffers more frequently from natural disasters and all airlines have experienced a temporary decline in passenger demand, said the analyst. It is likely to happen again, but short-term dip in demand from natural calamities will only be postponed for later, said the analyst maintaining a “buy” recommendation.
By Hwang You-mee (firstname.lastname@example.org)