[Click eStock] "Jin Air, Significantly Reduced Operating Loss... Approaching Profitability"

[Asia Economy Reporter Kwon Jae-hee] Daishin Securities maintained its 'Buy' rating and target price of 21,000 KRW for Jin Air on the 17th.

Jin Air posted results in the second quarter that exceeded market expectations. Jin Air's operating loss in Q2 was 15 billion KRW, significantly reduced compared to the initially estimated operating loss of 39 billion KRW and the market expectation of 33 billion KRW. This is attributed to a substantial increase in revenue driven by higher domestic and international supply and transportation in the second quarter.

In Q2, international supply (ASK) was 280 million km, and transportation (RPK) was 205 million km, increasing faster than expected. Accordingly, international sales reached 19.3 billion KRW, a 1408% increase compared to the same period last year.

For Q3, international ASK is projected at 1,102 million km, RPK at 819 million km, with sales expected to reach 81.6 billion KRW.

Yang Ji-hwan, a researcher at Daishin Securities, stated, "The recovery of the Japan route, influenced by the increase in supply from low-cost carriers (LCCs), is expected to be a key factor determining profitability. Although there may be differences between estimates and actual speed of profit improvement, the operating profit turning positive is within sight, so the direction is clear."

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