[Click eStock] "T'way, Raises This Year's Earnings Estimates... Target Price Up"

T'way Air introduced an A330-300 aircraft capable of flying over 100,000 km at Gimpo International Airport on the 17th. The A330-300, with 347 seats, is a model suitable for medium- to long-haul routes. Photo by Airport Photographers Group

NH Investment & Securities raised its 2024 earnings forecast for T'way Air on the 30th, citing stronger-than-expected demand on short-haul routes. While maintaining a 'Hold' investment rating, the target price was increased by 28% to 3,200 KRW.

Jeong Yeonseung, a researcher at NH Investment & Securities, stated, "Demand on short-haul routes (Japan, Southeast Asia, Oceania) continues to be stronger than expected, so despite increased supply, the growth in passenger volume is expected to remain robust through the first half of this year."

Looking at the detailed estimates, international passenger volume (based on RPK) in 2024 is expected to increase by 27.3% year-on-year. The fare level was also raised by 2% from the previous estimate to 84.5 KRW per km. Although cost volatility is significant, operating profit estimates for this year were raised by 86% to 131.3 billion KRW due to top-line growth.

Operations on long-haul routes starting from June were also factored into the performance. The stabilization of these routes is expected to impact profitability. Researcher Jeong analyzed, "During Korean Air's acquisition of Asiana Airlines, T'way Air received some of the European routes from the integrated corporation," adding, "There is short-term uncertainty in profitability due to costs related to workforce expansion and securing sales networks."

This content was produced with the assistance of AI translation services.