Shares of Korean budget airline, Jin Air, experienced a significant surge following their guided profit turnaround. On Thursday, during afternoon trading, the stock rose as much as 6.8%, outperforming the benchmark Kospi’s 0.2% gain.
This rally came after the release of the company’s preliminary earnings report on Wednesday. Jin Air is expecting to achieve a record operating profit of KRW181.59 billion ($135 million) for 2023, following a KRW67.28 billion loss from the previous year. Moreover, they anticipate a record net profit of KRW135.80 billion for 2023, after incurring a KRW49.41 billion loss in the prior period.
The company predicts that their revenue will double, reaching a record high of KRW1.277 trillion in 2023. Jin Air attributes this growth to robust demand for air travel.
Moreover, Korea Investment & Securities analyst Choi Go-woon has expressed optimism regarding Jin Air’s earnings growth in Q1 2024. This positive outlook is due to lower jet fuel prices and strong seasonal demand for air travel.
Additionally, Jin Air stands to benefit from their planned merger with another local budget airline, Air Busan. Choi believes that this merger will enhance Jin Air’s presence in the domestic market.
