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[Alpha Biz=(Chicago) Reporter Paul Lee] Hana Securities predicted on the 17th that Korean Air's fourth-quarter earnings last year will fall short of market expectations due to slowing long-distance demand and increased costs.
Hana Securities expects its fourth-quarter operating profit to fall 24.4 percent on-year to 390.4 billion won, falling below market expectations of 443.8 billion won.
Hana Securities explained, "The boarding rate for the U.S. route was good at late 80%, but demand fell slightly compared to the third quarter, and demand for the old state route has slowed since November."
"The oil costs are estimated to have increased by about 10% compared to the third quarter due to the rise in the average won/dollar exchange rate," Hana Securities said. "At the same time, we expect operating profit below market expectations due to increased labor costs."
Hana Securities also maintained its investment opinion "buy" and target stock price of 30,000 won for Korean Air.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
