Corporate Logo(source: koreanair.com)
LS Securities has raised its target price for Korean Air (003490) by 19.4% to 37,000 won, citing stabilizing macroeconomic conditions and robust demand during the peak travel season. LS Securities maintained its “Buy” rating.
Korean Air recently announced a standalone operating profit of 399 billion won for the second quarter, down 3.5% from the same period last year. However, the figure exceeded market expectations by 4.3%.
Analyst Lee Jae-hyuk commented, “The solid earnings were primarily driven by stronger-than-feared airfares, supported by preemptive capacity adjustments, improved performance on China routes, and resilient demand for long-haul premium seats.”
He further noted, “Despite a decline in cargo volume, freight rates remained high at 496 won per ton-kilometer. Although the termination of the U.S. de minimis rule and tariff risks have raised concerns, the company has maintained a strong load factor through proactive client engagement, project cargo acquisition, and expansion into fresh produce logistics.”
Lee added that the cost environment also improved from the previous quarter. “Lower global oil prices and a retreat in the KRW/USD exchange rate led to an 18% year-on-year drop in the company’s average fuel cost per barrel.”
“With macroeconomic stabilization and robust demand during the travel peak season, a clear re-rating is taking place across global airline stocks,” he said. “The combination of seasonal tailwinds, stable long-haul fares, improved operational efficiency from new aircraft, and diminishing macro cost headwinds suggests that Korean Air is well-positioned to capture the upper end of its valuation range.”
*[KOSPI] Korean Air Lines(003490) is the No. 1 airline in Korea with a fleet total of 170 aircraft, including 137 passenger planes and 33 cargo planes(as of March 2024). The market capitalization is 9.648 trillion won (as of July 14, 2025, closing price).
Corporate Logo(source: koreanair.com)
LS Securities has raised its target price for Korean Air (003490) by 19.4% to 37,000 won, citing stabilizing macroeconomic conditions and robust demand during the peak travel season. LS Securities maintained its “Buy” rating.
Korean Air recently announced a standalone operating profit of 399 billion won for the second quarter, down 3.5% from the same period last year. However, the figure exceeded market expectations by 4.3%.
Analyst Lee Jae-hyuk commented, “The solid earnings were primarily driven by stronger-than-feared airfares, supported by preemptive capacity adjustments, improved performance on China routes, and resilient demand for long-haul premium seats.”
He further noted, “Despite a decline in cargo volume, freight rates remained high at 496 won per ton-kilometer. Although the termination of the U.S. de minimis rule and tariff risks have raised concerns, the company has maintained a strong load factor through proactive client engagement, project cargo acquisition, and expansion into fresh produce logistics.”
Lee added that the cost environment also improved from the previous quarter. “Lower global oil prices and a retreat in the KRW/USD exchange rate led to an 18% year-on-year drop in the company’s average fuel cost per barrel.”
“With macroeconomic stabilization and robust demand during the travel peak season, a clear re-rating is taking place across global airline stocks,” he said. “The combination of seasonal tailwinds, stable long-haul fares, improved operational efficiency from new aircraft, and diminishing macro cost headwinds suggests that Korean Air is well-positioned to capture the upper end of its valuation range.”
*[KOSPI] Korean Air Lines(003490) is the No. 1 airline in Korea with a fleet total of 170 aircraft, including 137 passenger planes and 33 cargo planes(as of March 2024). The market capitalization is 9.648 trillion won (as of July 14, 2025, closing price).