SEOUL, KOREA - E-Trade Securities said on September 22 that this is the time to pay attention to Korean Air based on the following three reasons. It, however, maintained the investment opinion at "buy" and the target price of 56,000 won. Kim Min-ji, E-Trade Securities analyst, said, "In a situation where the aerospace industry is undergoing a fast growth, one needs to look at the industry differently."

 

The first reason, according to her, is  oil prices and exchange rate are moving in favorable directions, helping the passenger airline industry improve its operating profit overall. Thanks to these movements, Korean Airl will see its third-quarter operating profit ratio improve to 8 percent.

 

The second reason has to do with the fact that Korean Air is expanding its business in Europe by acquiring CSA Czech Airlines while establishing a joint venture in partnership with Delta Airlines in the Americas.

 

In addition, she pointed out the aerospace business of Korean Air that keeps growing 25 percent a year for the past few years. She said, "Due to a rise in airplane orders recently, the aerospace unit of Korean Air is expected to see its parts and MRO [maintenance, repair and operations] business grow rapidly."