Asiana Airlines is a full-service carrier (FSC) that transports international passengers, domestic passengers, and air cargo, mainly through Incheon, for fares. It became a subsidiary of Korean Air at the end of 2024 and is now a company on the verge of being absorbed into a combined Korean Air. In May 2026 it resolved on a merger with Korean Air as the surviving company, setting an exchange ratio that allocates about 0.27 Asiana shares per Korean Air share; on the merger date of December 17, 2026, the combined Korean Air will launch and Asiana will end its status as a separately listed company. What stands out recently is that the price converges around a benchmark set by Korean Air's share price and the exchange ratio, which is a strength, while its finances are fragile with large losses and heavy borrowings, and because the stock itself disappears once the merger completes in December, the merger schedule and exchange ratio must be read together with Korean Air's share-price trend.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 1633.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 38.3%).
- The most recent full-year net result was a loss.
- Revenue fell 12.6% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 19.0% lower than a year earlier.
- ROE is -37.9% (controlling-interest basis). It is below the sector average.
- Operating margin is -4.8%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Korean Air 63.88% (corporate)
Controlling bloc incl. related parties 63.88%
With the controlling bloc holding 64%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Asiana Airlines is a full-service carrier (FSC) that transports passengers and cargo.
- Its main source of income is carrying international passengers, domestic passengers, and air cargo for fares, mainly through Incheon.
- Passenger demand returned after COVID, but with falling cargo fares and heavy interest burdens overlapping, profitability stepped backward again.
- Above all, this company became a subsidiary of Korean Air at the end of 2024 and is now going through the process of being fully combined into Korean Air.
- In other words, rather than an independent airline, it is more accurately seen as a company on the verge of being absorbed into a 'combined Korean Air.'
- The latest close is ₩7,130 and the market cap is ₩1.5 trillion.
- The price sits below its 20-day line (₩7,480) and below its 60-day line (₩7,234).
- It is under both its short- and medium-term moving averages, so the trend is on the soft side.
- The RSI (an indicator that gauges the strength of gains versus declines over the past 14 days on a 0-100 scale) is 44.8, a neutral level.
- The one-month change is +6.1%, the three-month change is +3.5%, and the price is -29.5% from its 52-week high.
- Relative strength versus the KOSPI is 17 (on a 1-99 scale that weights recent returns against the index over the past year more heavily; higher means stronger than the market).
- That places it roughly in the top 84% of all stocks by strength.
- Over the past three months it lagged the index by 19.0%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- The financial metrics alone carry a heavy burden.
- The debt ratio (debt relative to equity) is 1,634%, meaning debt exceeds equity by more than 16 times.
- ROE (how much is earned in a year on equity) is -37.9%, a loss, and the operating margin is also -4.8%.
- The current ratio (assets that can be turned to cash immediately relative to debt due within a year) is 38%, so short-term funding capacity is tight.
- The P/E ratio (how many times one year's earnings the price represents) cannot be computed because of the loss, and P/B (how many times book net assets the price represents) is 1.97x.
- That said, the P/B looks high here because net assets themselves have thinned from accumulated losses, so it is hard to judge the stock as expensive on this ratio alone.
- For reference, net debt (total borrowings minus cash) is about ₩5.7 trillion, showing the large-scale borrowing structure characteristic of airlines.
- Growth is in a clear phase of contraction.
- 2025 revenue fell 12.6% year on year to ₩7.27 trillion, and operating profit swung from +₩27.6 billion (2024) to a loss of -₩345.2 billion.
- Over five years, revenue recovered from ₩4.3 trillion in 2021 to ₩7.6 trillion in 2023 before turning down again, and the bottom line swung between profit and loss without stabilizing.
- First-quarter 2026 was worse still: revenue of ₩1.68 trillion (-19% year on year) and a net loss of ₩251.7 billion, a wider loss.
- Future results are, in reality, less about the outlook as an independent airline and more about how it is integrated within Korean Air after the December merger.
- The company has not separately provided any annual earnings targets.
- The most important event is the merger.
- In May 2026 the company disclosed that it resolved on a merger with Korean Air as the surviving company and signed a merger agreement.
- An exchange ratio was set that allocates about 0.27 Asiana Airlines shares per Korean Air share, and the merger date is December 17, 2026.
- On that day the 'combined Korean Air' will launch and Asiana Airlines will end its status as a separately listed company.
- Related to this, procedural disclosures followed such as trading halt and resumption, calling of the general shareholders' meeting, and closing of the shareholder register.
- In June came a corrective disclosure related to the merger and a notice of an investor relations (IR) event.
- This is not a company to be evaluated on its results, but a company in the final stretch of a fixed merger process.
- The strong point is clear: because there is a 'benchmark' in Korean Air's share price and the exchange ratio, the price converges around that.
- In fact, the current price is not much different from Korean Air's share price multiplied by the exchange ratio.
- The cautions are just as clear.
- Its finances are fragile with large losses and heavy borrowings, and once the December merger completes, this stock itself disappears.
- Ultimately, Asiana Airlines' value depends not on Asiana's own earnings but on 'at what value it converts into Korean Air shares.' Reading this stock properly requires looking at the merger schedule, the exchange ratio, and the share-price trend of its counterpart Korean Air together.
🔎 Valuation vs peers Inconclusive
The peer set is a large carrier in the same air-transport sector (Korean Air) and a low-cost carrier (Jeju Air), but as Asiana faces a special situation of disappearing through a merger, the meaning of a standard multiple comparison is limited.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Korean Air | 12.61x | 0.90x | 7.12% |
| Jeju Air | 0.00x | 1.26x | -42.30% |
This is a stock where it is hard to draw the line between undervalued and overvalued with ordinary multiples. The P/E cannot be computed because of the loss, and the P/B of 2.06x results from net assets thinning on accumulated losses, so it is hard to call it expensive on that alone. Instead, this stock's benchmark price is the merger exchange ratio (Korean Air 1 : Asiana about 0.2736). The current price of ₩7,470 is not much different from Korean Air's close multiplied by that ratio, showing the market has already priced in much of the merger terms. Therefore its value is determined not by Asiana Airlines' own results but by Korean Air's share price and whether the merger goes through, and by standard valuation the appropriate call is inconclusive.
Price history Close · MA20 · MA60
The latest close is ₩7,130 and the market capitalization is ₩1.5 trillion. The price sits below its 20-day moving average (₩7,480) and below its 60-day moving average (₩7,234). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 44.8, a neutral level. The one-month change is +6.1%, the three-month change is +3.5%, and the position relative to the 52-week high is -29.5%. Relative strength versus the KOSPI is 17 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 16% of all stocks. Over the past three months it lagged the index by 19.0%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -19.01% / 6M -43.49% / 12M -69.00%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.97x is above the whole-market median (1.15x).
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is -37.9%, below the whole-market average (5.0%). The operating margin is -4.8%. The debt ratio is 1633.7%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $5.1B | $5.5B | $4.8B | -12.64% ↓ slower |
| Operating profit | $410.9M | $182.7M | -$228.8M | -225.21% ↓ slower |
| Net profit | $75.5M | -$277.9M | -$187.6M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $2.9B | $4.1B | $5.1B | $5.5B | $4.8B |
| Operating profit | $61.8M | $396.8M | $410.9M | $182.7M | -$228.8M |
| Net profit | -$240.2M | $73.2M | $75.5M | -$277.9M | -$187.6M |
| Revenue CAGR | 4-yr avg 13.76% | ||||
Revenue fell 12.6% year over year (2023 ₩7.6 trillion → 2024 ₩8.3 trillion → 2025 ₩7.3 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 225.2% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 13.8%. The two-year revenue CAGR is -2.4%. In the most recent quarter (Q1 2026), revenue was 19.0% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- —
Points to watch
- Debt far exceeds equity (debt ratio 1633.7%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 38.3%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 12.6% year over year (3-year trend: mixed).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13FilingResolution on a merger with Korean Air as the surviving company. Asiana Airlines becomes the company being dissolved.The trigger for this stock's price to track the merger exchange ratio and Korean Air's share price rather than results. Its remaining duration as a listed company is fixed (decisive for both short and medium term). Source
- 2026-06-26FilingCorrective disclosure of the material-events report on the company merger decision. Corrects details on the merger terms and procedures.Raises the degree of finalization of the merger's detailed terms. Directly affects the credibility of the exchange ratio and schedule (medium term). Source
- 2026-05-13UpdateDisclosure of material content on the trading halt and resumption under the merger procedure.Signals that trading may be temporarily restricted during the merger process. Affects liquidity and the timing when trading is possible (short term). Source
- 2026-05-13FilingResolution to convene the general shareholders' meeting for merger approval and setting of the record date for closing the shareholder register.Begins the shareholder-fixing procedure for the merger resolution. A precondition for the merger to go through (medium term). Source
- 2026-05-14EarningsDisclosure of key first-quarter 2026 accounting items. Confirms declining revenue and a wider net loss.Confirms weak results in the final phase before the merger. Supports that merger value matters more than standalone results (short term). Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Merger method and surviving company | (base disclosures) | = | Confirmed | link |
| Merger date and launch of the combined entity | (base disclosures) | 2026-12-17 | Confirmed | link |
| 2025 net profit | -₩283.0 billion | — | Unverified | link |
| Merger exchange ratio | (base disclosures) | 1 : approx. 0.2736 | Confirmed | link |
Recent filings
- 2026-06-10Disclosure
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-14Material-fact report (amended)
- 2026-05-13Disclosure
- 2026-05-13Shareholders' meeting notice
- 2026-05-13Material-fact report
- 2026-05-13Disclosure
- 2026-05-12Disclosure
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.