[Edaily Reporter Lee Hye-ra] On the 11th, Hana Securities assessed that #KoreaAirports will see only limited impact on its earnings despite rising oil prices and is expected to benefit from the restructuring of the aviation market centered on Korean Air.

Ahn Do-hyun, an analyst at Hana Securities, stated in a report released that day, “While airlines are facing the burden of rising oil prices, Korea Airport’s revenue is generated based on flight frequency and handling unit prices, so the impact is limited,” adding, “As the market reorganization centered on Korean Air progresses, the upward trend in earnings is expected to continue.”
Korea Airport is a ground handling specialist affiliated with Korean Air, engaged in aircraft ground handling, refueling, and maintenance.
In the first quarter of this year, revenue reached 178 billion won, a 14% increase from the same period last year, while operating profit rose 36% to 19.7 billion won. The growth in revenue was driven by an increase in the number of passenger flights handled and an expansion in cargo handling volume. Revenue in the passenger, cargo, refueling, and maintenance segments increased by 8%, 16%, 17%, and 26%, respectively. Additionally, profitability improved as part of last year’s unit price increases was retroactively applied.
Analyst Ahn explained, “Fuel costs are estimated to account for less than 5% of a ground handling company’s operating expenses,” adding, “While there is a possibility of some flight reductions if high oil prices persist, the scale of reductions by our largest client, Korean Air, is not expected to be significant.”
He also cited the expansion of foreign carrier clients as a positive factor. “With the influx of new clients, the number of flights handled for foreign carriers increased by 18% year-over-year,” he noted, adding, “The expansion of the client base beyond Korean Air is also contributing to earnings growth.”
In particular, he projected that the market realignment centered on Korean Air would serve as a medium- to long-term growth driver for Korea Airports Corporation. Analyst Ahn stated, “Robust demand is evident as both cargo volume and air freight rates at Incheon International Airport are increasing,” adding, “It is important to note that the company has secured Korean Air, the country’s sole full-service carrier (FSC), and Jin Air, the largest low-cost carrier (LCC) group, as captive customers.”
He added, “The potential for expanded shareholder returns following the launch of the merged airline is also worth noting.”