April 20, 2024

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[THE INVESTOR] Asiana Airlines managed to fend off the burden of increasing oil prices in the third quarter, said Mirae Asset Daewoo on Nov. 7 maintaining a “buy” recommendation and 5,200 won (US$4.64) target price. 

Its operating profit fell 14.8 percent on-year to 101 billion won, slightly lower than market expectations, but is decent considering the oil price hike. The improved earnings from subsidiaries including Air Seoul and Kumho Resort cushioned a decline in its bottom line. As oil prices and exchange rate stabilize, its fourth-quarter operating profit will remain steady. The cargo sector will enter a high season and limited supply will maintain improvement, while passenger load will gain, according to analyst Ryu Je-hyeon. 

Its financial structure, which has beleaguered the airline company, will further improve when it issues asset-backed securities and IPO of its IT services affiliate Asiana IDT in the fourth quarter, added the analyst.

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