Jeju Air is Korea's largest low-cost carrier, keeping fares low and selling extras on an optional basis. Most of its revenue comes from passenger fares on Japan and Southeast Asia routes out of Incheon and Gimhae plus domestic flights, and with lease and maintenance costs sitting as fixed expenses, its profit rises and falls quickly with load factors — a strong leverage character. On May 15 the quarterly report confirmed a Q1 turn to profit with revenue up +34.2% and operating profit of ₩69.0 billion, and factoring in this recovery, the forward P/E on this year's expected earnings has moved into an undervalued zone at about 8.3x, low versus peers. The point worth watching is that when short-haul Japan and Southeast Asia demand holds up and fuel and FX are favorable, the undervaluation appeal and recovery momentum work strongly together — while a debt ratio of 854% and a current ratio of 33% mean the short-term cushion is thin, so if either demand or costs turn, profit can swing sharply.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 854.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 33.4%).
- The most recent full-year net result was a loss.
- Revenue fell 18.4% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 34.2% higher than a year earlier.
- ROE is -42.3% (controlling-interest basis). It is below the sector average.
- Operating margin is -7.1%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder AK Holdings 50.37% (corporate)
Controlling bloc incl. related parties 53.62%
With the controlling bloc holding 54%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Jeju Air is Korea's largest low-cost carrier (LCC, an airline that keeps fares low and sells extra services on an optional basis).
- Its earnings structure is simple.
- Most revenue comes from passenger fares, and its network centers on Japan (Osaka, Fukuoka, Tokyo, etc.) and Southeast Asia (Vietnam, Thailand, the Philippines) out of Incheon and Gimhae, plus domestic routes.
- Cargo transport and ancillary revenue such as baggage and seat selection are added on top.
- In other words, it is a typical short-haul LCC business whose results are driven by FX, fuel prices and passenger demand — especially the number of short-haul tourists to Japan and Southeast Asia.
- Because aircraft lease costs and maintenance costs sit as fixed expenses, profit rises quickly when load factors climb and falls quickly when they drop — a strong leverage character.
- The latest close is ₩4,300 and the market cap is ₩346.8 billion.
- The price sits below the 20-day line (₩4,660) and below the 60-day line (₩4,902).
- Trading beneath both the short- and mid-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary gauge comparing upward and downward force over the past 14 days on a 0-100 scale) is 36.9, a neutral level.
- The one-month change is +3.1%, the three-month change is -15.0%, and the position versus the 52-week high is -40.8%.
- Relative strength against the KOSPI is 7 (1-99, computed from the past year's return versus the index with more weight on recent performance; higher means stronger than the market).
- That places it in roughly the top 94% of all stocks by strength.
- Over the past three months it lagged the index by 35.3%.
- Chart reading is best done alongside trading volume and disclosure dates.
- On a confirmed annual (2025) basis the P/E ratio (how many times one year's earnings the share price is) cannot be computed because last year was a loss.
- P/B (how many times net assets the share price is) is 1.26x, similar to the whole-market median (about 1.44x).
- The 2025 ROE of -42.3% and operating margin of -7.1% are the product of a single loss year, so in the current phase of a rebound they are more like a mirror reflecting the past.
- For such an earnings-inflection stock, the forward basis (this year's expected earnings) shows the company's real picture better than the trailing confirmed figures.
- The forward P/E on this year's expected earnings is about 8.3x, below the median of comparable short-haul airlines, so the share price is on the cheap side relative to earnings.
- Meanwhile the financial structure clearly deserves attention.
- The debt ratio (debt against equity) is 854.4% and the current ratio (assets readily convertible to cash against debts due within a year) is 33.4% — even allowing for the sector's characteristic of large aircraft lease liabilities, the short-term cushion is not thick.
- A balanced view holds both the undervaluation signal and the thin financial strength together.
- Over five years, both the sharp rebound of the post-COVID recovery phase and last year's give-back are visible.
- Revenue rose to ₩1.72 trillion in 2023 and ₩1.94 trillion in 2024, then slipped -18.4% to ₩1.58 trillion in 2025, and operating profit turned from +₩169.8 billion in 2023 and +₩79.9 billion in 2024 to a -₩111.7 billion loss in 2025.
- Last year's weakness mainly reflected softer second-half demand.
- But in the most recent Q1 2026 the flow clearly changed: revenue of ₩516.2 billion (+34.2%) and operating profit of ₩69.0 billion marked a clear turn to profit from a year-earlier operating loss in the same quarter.
- The core is that as short-haul Japan and Southeast Asia passenger demand revived, load factors rose and revenue came to comfortably cover the fixed lease and maintenance costs.
- The forward P/E on this year's expected earnings, at about 8.3x, reflects this recovery trend and points not to a one-off Q1 bounce but to a full-year profit trajectory.
- In short, last year's loss figures are the past, and this year is more naturally seen as a normalization phase where demand recovery and improving load factors flow through to profit.
- Recent disclosures read along two lines.
- One is results and structural confirmation.
- On May 15, 2026 the quarterly report (2026.03) confirmed the Q1 turn to profit, and the same day an amended attachment to the business report (2025.12) wrapped up the details of last year's loss.
- The other is business and asset restructuring moves.
- On May 13 a decision to transfer a subsidiary's business (voluntary disclosure) and a decision to dispose of tangible assets appeared together, which can be read as a signal of tidying up non-core businesses and assets.
- The June 9 disclosure on a new facility investment (amended entry) was a revision of the investment plan, a point to check on the direction of maintenance and operations-base investment.
- On May 18 an investor relations (IR) event was announced, and over May-June numerous large-holding and largest-shareholder ownership-change reports appeared, so changes in the ownership structure are also worth watching.
- The strengths are recovery momentum and valuation.
- From last year's loss, the company turned quickly to profit in Q1 with revenue up +34.2% and operating profit of ₩69.0 billion, and as long as short-haul Japan and Southeast Asia demand holds up, there is force to carry it into a full-year profit trajectory.
- The forward P/E on this year's expected earnings, at about 8.3x, is low versus peers, placing the share price in an undervalued zone relative to earnings.
- Alongside this, the point to watch is financial strength.
- With a debt ratio of 854% and a current ratio of 33%, the short-term cushion is thin, so if any one of fuel, FX or passenger demand turns, profit can swing sharply given the short-haul LCC character.
- In sum, this is a structure where 'when short-haul passenger demand is alive and fuel and FX are favorable, the undervaluation appeal and recovery momentum work strongly together, and when demand cools or costs spike, volatility rises because of the thin financial strength.' Watching whether the Q1 profit carries through to the full year, alongside the pace of improvement in debt and liquidity, will sharpen the picture.
🔎 Valuation vs peers Inconclusive
The comparison set is national airlines whose short-haul and domestic passenger businesses overlap — Jin Air, a fellow LCC; Asiana Airlines, which shares the recovery phase; and Korean Air, a large full-service carrier (FSC) of different scale and structure kept for reference while accounting for differences in business character.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jin Air | — | 1.23x | -4.35% |
| Asiana Airlines | — | 1.97x | -37.94% |
| Korean Air | 12.61x | 0.90x | 7.12% |
(a) Within the peer set, a P/B of 1.27x is essentially the same position as the short-haul LCC Jin Air and higher than the large carriers. (b) It is hard to declare premium or discount in a word: the 2025 loss blocks P/E comparison, and on an asset-value basis (P/B) it sits near the LCC average. (c) Last year's trailing metrics, being a loss, distort valuation at an earnings inflection. Forward figures, with no official company outlook, can only be gauged from a DART seasonality approximation (annual operating profit of about ₩165.9 billion), which is also of low reliability. Accordingly, until sustained profitability is confirmed, the call is left inconclusive.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩437.9 billion | approx. ₩24.1 billion | approx. ₩7.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩4,300 and the market capitalization is ₩346.8 billion. The price sits below its 20-day moving average (₩4,660) and below its 60-day moving average (₩4,902). 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 36.9, a neutral level. The one-month change is +3.1%, the three-month change is -15.0%, and the position relative to the 52-week high is -40.8%. Relative strength versus the KOSPI is 7 (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 6% of all stocks. Over the past three months it lagged the index by 35.3%. 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 -35.27% / 6M -49.55% / 12M -74.51%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.26x is in line with 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 -42.3%, below the whole-market average (5.0%). The operating margin is -7.1%. The debt ratio is 854.4%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.1B | $1.3B | $1.0B | -18.38% ↓ slower |
| Operating profit | $112.5M | $53.0M | -$74.0M | -239.73% ↓ slower |
| Net profit | $89.0M | $14.4M | -$77.1M | -635.43% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $181.0M | $465.6M | $1.1B | $1.3B | $1.0B |
| Operating profit | -$210.2M | -$117.6M | $112.5M | $53.0M | -$74.0M |
| Net profit | -$180.5M | -$115.2M | $89.0M | $14.4M | -$77.1M |
| Revenue CAGR | 4-yr avg 55.09% | ||||
Revenue fell 18.4% year over year (2023 ₩1.7 trillion → 2024 ₩1.9 trillion → 2025 ₩1.6 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 239.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 55.1%. The two-year revenue CAGR is -4.3%. In the most recent quarter (Q1 2026), revenue was 34.2% higher 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 854.4%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 33.4%).
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 18.4% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-15EarningsQ1 2026 quarterly report disclosed — revenue ₩516.2 billion, operating profit ₩69.0 billion, turning to profit from a year-earlier loss in the same quarterNear term: confirms an earnings recovery after last year's weakness through official results. Medium term: the key is whether the Q1 profit carries into the full year given seasonality. Source
- 2026-05-13FilingDecision to transfer a subsidiary's business (voluntary disclosure) and decision to dispose of tangible assets — a move to tidy up non-core businesses and assetsNear term: possible one-off disposal gains/losses and cash inflow. Medium term: whether this points toward simplifying the business structure and easing financial burden needs to be confirmed through follow-up filings. Source
- 2026-06-09UpdateNew facility investment, etc. (amended entry) — disclosure revising items of the facility investment planNear term: limited impact. Medium term: a point to check for the effect of the scale and timing of maintenance and operations-base investment on future fixed costs and cash flow. Source
- 2026-05-18IRInvestor relations (IR) event announcement — an official setting where the company itself explains results and business statusNear term: a chance to confirm, through the company's own channel, the background of the Q1 turn to profit and its route strategy. Medium term: a point to check the operating direction the company presents. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Q1 2026 operating profit (cumulative) | ₩69.0 billion | ₩69.0 billion | Confirmed | link |
| 2025 annual revenue | 1₩579.9 billion | 1₩579.9 billion | Confirmed | link |
| Latest closing price | ₩4,300 | — | Unverified | link |
| 2026 annual operating profit seasonality approximation | approx. ₩165.9 billion | — | Unverified | link |
Recent filings
- 2026-06-09Amended filing
- 2026-06-05OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-29OwnershipOwnership-change filing
- 2026-05-22OwnershipLargest-shareholder ownership change report
- 2026-05-21OwnershipOwnership-change filing
- 2026-05-18Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-15PeriodicAnnual business report (amended)
- 2026-05-13Disclosure
- 2026-05-13Disclosure
📖 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.