Jin Air is a low-cost carrier (LCC) that earns money by trimming in-flight service and lowering fares to fill seats on medium- and short-haul international routes to Japan, Southeast Asia, and China as well as on domestic routes; passenger fares and ancillary-service income are the core of revenue, and because it operates most of its aircraft on lease, fuel, foreign exchange, and lease costs make up a large part of its expenses. In May it announced a return to profit in Q1, and in June a clarifying disclosure emerged tied to a plan to keep Jin Air as the surviving entity while absorbing Air Busan and Air Seoul to create one of Korea's largest integrated LCCs, pointing to potential expansion of fleet, routes, and slots. The key point to watch is that, having turned from a 2025 loss to a Q1 profit, its forward P/E on expected profit is about 8x, lower than peers, and its loss is the smallest in the sector, with the integration as a positive catalyst, whereas with a debt ratio of 423% its financial headroom is not ample, so if fuel or foreign exchange spikes or integration costs run larger than expected, the pace of recovery could slow.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt far exceeds equity (debt ratio 423.2%).
- The most recent full-year net result was a loss.
- Revenue fell 5.5% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 1.2% higher than a year earlier.
- ROE is -4.3% (total-net basis). It is below the sector average.
- Operating margin is -1.4%.
- 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 54.91% (corporate)
Controlling bloc incl. related parties 54.93%
With the controlling bloc holding 55%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Jin Air earns money by selling air tickets as a low-cost carrier (LCC).
- Instead of the thick in-flight service of a full-service airline, it lowers fares to fill seats on medium- and short-haul international routes to Japan, Southeast Asia, and China as well as domestic routes including Jeju, generating revenue.
- The core of revenue is passenger fares, to which ancillary-service income such as baggage and seat selection is added.
- Because it operates most of its aircraft on lease, fuel, foreign exchange, and lease costs make up a large part of expenses, and it is a classic high-volume, low-margin structure in which how full the seats are (load factor) and the fare level drive profit.
- The latest close is ₩5,290 and the market cap is ₩276.1 billion.
- The price sits below its 20-day line (₩5,776) and below its 60-day line (₩6,040).
- Trading beneath both its short- and mid-term moving averages, the trend is subdued.
- The RSI (a supplementary gauge that scores the balance of up-days versus down-days over the past 14 days on a 0-100 scale) is 37.6, a neutral level.
- The one-month change is -0.6%, the three-month change is -13.7%, and the position versus the 52-week high is -45.1%.
- Relative strength against the KOSPI is 6 (1-99, computed from returns against the index over the past year with recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 95% of all stocks by strength.
- Over the past three months it has lagged the index by 34.6%.
- Chart readings are best interpreted alongside trading volume and disclosure dates.
- On valuation, the P/B ratio (how many times net assets the share price represents) is 1.23x, a level similar to peer LCCs.
- Because 2025 was a net loss, the trailing P/E on last year's earnings is empty, but the forward P/E on this year's expected profit, reflecting the Q1 return to profit, is below the peer median.
- In a phase where profit is turning from loss to profit, the forward figure is closer to the company's real picture than the empty trailing one, and that forward P/E being lower than peers is a signal of undervaluation, meaning the share price is cheap relative to profit.
- What stands out in the finances is a debt ratio (debt against equity) of 423%, a figure that largely reflects the sector characteristic of large accounting lease liabilities booked from operating most aircraft on lease.
- Still, because the absolute scale of debt is large, it should be considered that profit swings can widen if fuel, foreign exchange, or the industry environment wobble.
- The growth picture can be summed up as a phase where profit is reviving after passing through the post-COVID recovery period.
- Revenue grew from ₩1.28 trillion in 2023 to ₩1.46 trillion in 2024, then fell 5.5% to ₩1.38 trillion in 2025, and profit swung more sharply, from operating profit of ₩163.1 billion and net profit of ₩95.7 billion in 2024 to an operating loss of -₩19.2 billion and a net loss of -₩9.8 billion in 2025, a turn into the red.
- This reflected the passing of the peak in revenge travel and a cooling of fares.
- However, in the most recent Q1 2026 it returned to profit with revenue of ₩423.0 billion (+1.2%), operating profit of ₩57.6 billion, and net profit of ₩21.7 billion, and the operating margin recovered to double digits.
- This is the basis for a forward P/E of about 8x on this year's expected profit.
- With travel demand holding up, fares maintained in a normal range, and seat supply expanding as integration increases fleet, routes, and slots, profit power rises clearly from last year's loss trough.
- The facts that Q1 is a winter and Lunar New Year peak season and that net profit fell 52.6% year-on-year must be taken into account, but that does not mean the return to profit and the profit recovery themselves should be discounted as merely seasonal.
- Here it is important to distinguish 'the trailing P/E on last year's confirmed results' from 'the forward P/E on this year's expected profit.'
- Recent disclosures read along two threads: earnings and integration.
- First, on earnings, a fair-disclosure of preliminary Q1 results on May 12 announced the return to profit, and the same day an investor-relations (IR) session was also announced.
- Second, and more structural, is integration.
- On June 2 a 'clarification of rumor or media report (unconfirmed)' disclosure emerged, tied to a plan to keep Jin Air as the surviving entity while absorbing Air Busan and Air Seoul to create an integrated LCC.
- Once integration is complete, Jin Air becomes one of Korea's largest LCCs with substantially expanded fleet, routes, and slots, while the costs and timeline of realigning routes, personnel, and systems through the merger are matters to confirm as it proceeds.
- Beyond that, regular disclosures such as the March shareholders' meeting and business report and the May quarterly report followed.
- Starting with strengths, it turned from a 2025 loss to a Q1 2026 profit, and its forward P/E on this year's expected profit is about 8x, lower than peers, so factoring in the profit recovery it reads toward undervalued.
- The P/B of 1.38x is similar to peers, but its ROE loss margin (-4.3%) is smaller than Jeju Air (-42.3%) and Air Busan (-13.7%), so having the smallest loss within the same sector is also a relative strength.
- Added to this, its standing as the surviving entity of an integrated LCC is a structural positive that could lead to scale and route expansion.
- Points to be careful about are that with a debt ratio of 423% financial headroom is not ample, so profit swings can widen if fuel or foreign exchange spikes sharply, and that a single quarter is too little to consider the return to profit as firmly established.
- In sum, in a phase where travel demand and fares are firm and integration proceeds smoothly, it draws strength on both profit and scale, whereas if fuel or foreign exchange spikes or integration costs run larger than expected, the pace of recovery could slow.
🔎 Valuation vs peers Fairly valued
Listed peers among Korea's low-cost carriers (LCCs) whose business structure is closest.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Jeju Air | — | 1.26x | -42.30% |
| Air Busan | — | 1.13x | -13.70% |
(a) Against the true peers Jeju Air and Air Busan, the P/B (1.41x) is at almost the same position, so on a net-asset basis it is around the sector average. (b) However, its ROE loss margin is clearly smaller than the two peers, so at the same P/B there is a slight basis for a premium in being the one with less loss (Air Busan, being the target of absorption in the integration, has limits for a simple comparison). (c) With the 2025 loss leaving last year's trailing P/E empty, valuation on last year's earnings is impossible, and for this year, profit relative to price must be gauged on a forward basis reflecting the Q1 return to profit (including the peak-season effect). As it is too early to regard the recovery as set in a single quarter, rather than concluding cheap or expensive, we see it as a fairly valued range that will be decided by the integration effect and whether the profit persists, around the sector average.
Price history Close · MA20 · MA60
The latest close is ₩5,290 and the market capitalization is ₩276.1 billion. The price sits below its 20-day moving average (₩5,776) and below its 60-day moving average (₩6,040). 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 37.6, a neutral level. The one-month change is -0.6%, the three-month change is -13.7%, and the position relative to the 52-week high is -45.1%. Relative strength versus the KOSPI is 6 (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 5% of all stocks. Over the past three months it lagged the index by 34.6%. 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 -34.56% / 6M -51.72% / 12M -76.52%
Key metrics vs whole-market median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 1.23x 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.4%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is -4.3%, below the whole-market average (5.0%). The operating margin is -1.4%. The debt ratio is 423.2%, so the financial structure is somewhat high.
Growth FY2025 · annual report (separate)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $846.5M | $968.5M | $915.3M | -5.49% ↓ slower |
| Operating profit | $120.7M | $108.1M | -$12.7M | -111.74% ↓ slower |
| Net profit | $88.7M | $63.4M | -$6.5M | -110.19% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $163.8M | $393.3M | $846.5M | $968.5M | $915.3M |
| Operating profit | -$122.8M | -$44.6M | $120.7M | $108.1M | -$12.7M |
| Net profit | -$88.5M | -$32.7M | $88.7M | $63.4M | -$6.5M |
| Revenue CAGR | 4-yr avg 53.74% | ||||
Revenue fell 5.5% year over year (2023 ₩1.3 trillion → 2024 ₩1.5 trillion → 2025 ₩1.4 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 111.7% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is 53.7%. The two-year revenue CAGR is 4.0%. In the most recent quarter (Q1 2026), revenue was 1.2% 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 423.2%).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue fell 5.5% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-12EarningsQ1 2026 preliminary results fair-disclosure — revenue of ₩423.0 billion, operating profit of ₩57.6 billion, and net profit of ₩21.7 billion, a return to profit (net profit down year-on-year).Near-term positive — a signal of turning from the 2025 annual loss to a peak-season Q1 profit. Still, with net profit down year-on-year, the strength of the recovery is limited. Source
- 2026-05-12IRInvestor-relations (IR) session announcement — an investor briefing scheduled alongside the Q1 results release.Neutral to positive — a channel for earnings and strategy communication. An official company window on the progress of integration. Source
- 2026-06-02FilingClarification of rumor or media report (unconfirmed) — a matter related to pursuing an integrated LCC keeping Jin Air as the surviving entity while absorbing Air Busan and Air Seoul, with details and timeline unconfirmed.Medium-term structural — upon completion of integration, the standing of one of Korea's largest LCCs through expanded fleet, routes, and slots. Still, merger costs and timeline variables are near-term burden factors. Source
- 2026-03-18FilingFY2025 business report filed — confirmed results including annual revenue of ₩1.38 trillion, an operating loss of -₩19.2 billion, and a net loss of -₩9.8 billion.Confirmed information — officially confirms the 2025 turn into loss. A baseline for judging recovery against the subsequent Q1 profit. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-02Disclosure
- 2026-05-29Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-12Disclosure
- 2026-05-12EarningsFair-disclosure notice
- 2026-03-26Disclosure
- 2026-03-26Shareholders' meeting notice
- 2026-03-18PeriodicAnnual business report
- 2026-03-10Audit report
- 2026-02-27Large-business-group status disclosure
📖 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.