Daishin Securities evaluated on the 20th that Korean Air is facing political instability due to the impeachment issue of President Yoon Suk-yeol and high exchange rate problems, but passenger demand is stronger than expected. As a result, Daishin Securities maintained its investment opinion and target price for Korean Air at "buy" and 33,000 won, respectively. The previous closing price for Korean Air was 24,300 won, indicating a potential increase of about 35.8%.
Daishin Securities analyzed that despite the impeachment issue of President Yoon and high exchange rate problems, domestic travel (inbound) and overseas travel (outbound) passenger demand is stronger than expected. Research Institute member Yang Ji-hwan noted, "Due to the unstable political situation and high exchange rates, there is a possibility that demand could contract in the short term, but if the political landscape stabilizes, there is a possibility of recovery in 2025 due to the effects of visa exemption for China."
The reflection of profits and losses from the acquisition of Asiana Airlines is expected to be implemented from the first quarter of 2025. Asiana Airlines decided on the 13th to repay 1.1 trillion won in policy funds, including 680 billion won in convertible bonds, which is expected to significantly reduce the liability scale on the balance sheet of Korean Air and Asiana Airlines. Research Institute member Yang noted, "The increased market dominance and economies of scale expected from the acquisition of Asiana Airlines are promising."
Research Institute member Yang also analyzed that Korean Air's consolidated revenue for the fourth quarter of this year is expected to be 4.5 trillion won, with operating profit at 455.2 billion won, which is projected to fall short of market expectations. Yang said, "It seems the performance will be weaker than expected due to the decline in international passenger yield and the payment of special bonuses due to the acquisition of Asiana Airlines."