[EQUITIES] ‘Asiana Airlines sputters in Q3’
[THE INVESTOR] Asiana Airlines’ third-quarter earnings will slide, said Kiwoom Securities on Oct. 13, lowering the target price to 5,000 won (US$4.43) from 7,000 won.
Its operating profit will drop 27.6 percent to 109.8 billion won from the same period last year, as demand for Chinese routes are deteriorating, said analyst Cho Byeong-heui. Low-cost carriers are joining the price competition for services to Japan and Southeast Asia as well, pointed out the analyst.
Chinese routes are unlikely to be opened to competitors soon, so when traffic regains Asiana’s traffic rights will be highlighted again, said the analyst maintaining a “buy” recommendation.
By Hwang You-mee (firstname.lastname@example.org)