[THE INVESTOR] Stocks of Korean airlines, led by Korean Air Lines, are set to further rise down the road following their recent surge on the back of falling oil prices, solid demand and a strong won, analysts said on June 23.

Korean Air Lines, which has gained some 50 percent so far this year, traded at 38,950 won (US$34) on the Seoul bourse as of 10:20 a.m., extending its gain to a third day. No. 2 flag carrier Asiana Airlines, which saw its stock price almost double this year, hit a yearly high of 6,330 won. Jeju Air, a local budget carrier, also traded at a 52-week high of 40,250 won.

Global oil prices were recently trading at slightly over $40 per barrel, a some 20 percent drop from the end of last year. Usually, lower oil prices lead to an improvement in an air carrier‘s profitability due to lowered costs.

Also, the Korean won has gained ground against the US dollar, currently trading at 1,140 won to the greenback, sharply rising from the previous 1,200-won level, which helps reduce travel costs for passengers and cut financial costs for air carriers.

By Alex Lee and newswires (alexlee@heraldcorp.com)