The Best Securities, "Korean Air, the expected turnaround in three years."

[Korea hyerin nine financial newspaper reporter] was expected to net profit this year to resolve issues relative turnaround in three years for the airline for the best investment securities 24. This recommendation was 'BUY' with a target price of maintaining ₩ 36,000.

Korean Air Summer period (26 March to 28 October) will be the Americas, 18 each week of the Savior long supply routes, expanded 16 times. 14th in San Francisco, 7th, 7th in Seattle 5 times, 19 from LA 14 times times, 4 times 5 times in Las Vegas and the periodic increase in the number of flights Barcelona three new flying six times in Amsterdam four times, Rome seven times from 4 times and a circuit 6 in the periodic increase in the number of flights to Vienna three times.

It is about an impact on long-haul operations center of the intensifying competition from low-cost air carriers.

Hwanghyeonjun Fellow of the securities are 'low-cost carrier (LCC) will increase the flight number of 1143 increased 28% circuit the previous year in the summer of this year and is expanding rapidly to supply' while ', which are concentrated such as Japan, Southeast Asia and deepen the short-haul competition air for as long as you explained, we believe that the strategic long-haul routes operated by the center.

Also, he 'affiliates is expected to turn profitable in three years, this year's net profit to resolve issues, "said," because I think domestic carriers than the Chinese and Japanese airlines that sales are more favorable based on domestic passenger demand expanded valuation premium to the it is determined that there is no crowd 'he said.

In addition, he added, "Recent oil prices also have to go to the favorable flow of air performance this year has increased the possibility to surpass our estimates and consensus."



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