Yuanta Securities maintained a "buy" rating for Korean Air on September 30, raising its target price to 40,000 won, citing anticipated profitability improvements following the merger with Asiana Airlines in December.
Choi Ji-woon, a researcher at Yuanta Securities, noted in a report that applying Korean Air's fare structure to Asiana's existing routes could enhance revenue, and that network efficiency is expected through route and schedule adjustments.
He added, "With synergies from purchasing, contract integration, and maintenance efficiency, the profitability of the merged entity is expected to improve compared to this year."
Regarding international passenger services, Choi observed, "This quarter, we saw significant transport growth in short-haul routes centered on China and Japan, while strong demand for long-haul and connecting flights has led to improvements in both fares and load factors compared to last year." In the air cargo sector, he projected that robust demand for high-value cargo, such as semiconductors, would keep cargo profitability at a solid level.
Choi also expressed confidence in the company's strong profit defense amid rising oil price volatility, stating, "Demand for long-haul and premium services remains robust, and cargo operations have secured stable volumes based on long-term contracts."
* This article has been translated by AI.
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