This photo provided by Jeju Air Co. shows workers using a pressurized wand to clean off engine fan blades.
SEOUL, June 2 (Korea Bizwire) — With Japan opening its borders to foreign tourists and China beginning to lift city blockades, low-cost carriers are facing hopes for recovery.
Jeju Air Co. shares jumped from 18,950 won on May 26 to 21,700 won on May 31, up by 14.5 percent in just four days.
Jin Air Co.’s shares jumped by 6.8 percent, Air Busan Co.’s by 4.8 percent and T’way Air Co.’s by 7.9 percent.
Unlike Korean Air Lines Co., whose stock prices rose by only 1.9 percent, most low-cost carriers have seen a major boost in their share prices.
Major airlines like Korean Air were able to perform relatively well during the pandemic era thanks to the rising cost of shipping.
Korean Air and Asiana Airlines Co. reported 788.4 billion and 176.9 billion won in operating profits in the first quarter of this year, setting new records.
All four low-cost carriers listed on the stock market, however, have been suffering from losses.
With recent hopes for the return of international flights, however, things are starting to look up for them.
“The possibility of reopening international flights to Japan and other Asian countries will work as a strong momentum that will bring up the share prices of low-cost carriers in the country,” Hanwha Investment & Securities researcher Park Seung-young said.
“This optimism will start to translate into performance in the second quarter, which allows us to expect that the effects of the momentum will carry on.”
Kevin Lee (kevinlee@koreabizwire.com)
