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| (사진= 대한항공 홈페이지) |
[Alpha Biz=(Chicago) Reporter Paul Lee] Korea Investment & Securities said on the 25th that it will lower its target stock price from 39,000 won to 34,000 won, reflecting Korean Air's fourth-quarter earnings falling short of expectations and uncertainties stemming from the delayed acquisition of Asiana Airlines. However, this year's performance is expected to rebound, so the investment opinion remained "buy."
Korean Air's sales in the fourth quarter of last year are estimated to be 3.8 trillion won, down 2% from the previous quarter, and operating profit is estimated to be 516 billion won, down 36%. It fell far short of market expectations, recording a deficit of 300 billion won in the cargo sector alone due to falling air freight fares. Air freight fares fell 13 percent in the fourth quarter, with shipments estimated to have fallen 4 percent.
In addition, the recent increase in demand for overseas travel was concentrated in short-distance areas where low-cost carriers (LCCs) increased on a large scale. In addition, oil costs have not changed much compared to the previous quarter, but operating costs are estimated to have increased by 7% due to increased labor costs.
Korea Investment & Securities expects Korean Air's operating profit to reach KRW 1.47 trillion this year, down 48% from last year.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
