PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
Jin Air is being reshaped into Korea's largest low-cost carrier through its merger with Air Busan and Air Seoul, even as high fuel costs pushed the company back into a large operating loss in the second quarter of 2026.
Q2 2026 revenue rose 17.7% year over year to KRW 360.3 billion, but the operating loss widened to KRW 73.1 billion and net loss to KRW 67.5 billion.
Jin Air, Air Busan, and Air Seoul signed a merger agreement on August 21, 2026, targeting a combined-entity launch on March 17, 2027.
Once completed, the merged carrier is expected to operate a combined fleet of 58 aircraft, surpassing T'way Air and Jeju Air to become Korea's largest LCC.
Jin Air will end its all-Boeing fleet history by receiving its first Airbus A321CEO on September 10, 2026.
Hana Securities maintained a BUY rating and a target price of KRW 7,000 on Jin Air in its May 19, 2026 report.
Jin Air is a low-cost carrier under the Korean Air group, operating domestic routes and short- to mid-haul international routes to Japan, China, and Southeast Asia.
The company has historically operated an all-Boeing fleet of B737 and B777 family aircraft, but it will take delivery of its first Airbus aircraft, an A321CEO previously operated by Asiana Airlines, on September 10, 2026.
In addition, Jin Air has disclosed a lease agreement for 14 aircraft from Korean Air and Asiana Airlines, including 10 A321neo units, worth roughly KRW 707 billion, as part of a broader shift toward an Airbus-centered fleet.
The company's core revenue sources are passenger fares and in-flight and ancillary services, with inbound and outbound travel demand to Japan and China having a significant impact on results.
In the second half of the year, Jin Air is diversifying its route network with new services to Incheon-Kobe and Incheon-Yichang and the resumption of the Incheon-Yantai route. In Korea's domestic LCC market, Jin Air has competed with Jeju Air, T'way Air, Air Busan, Air Seoul, and Eastar Jet.
That competitive landscape shifted materially when the boards of Jin Air, Air Busan, and Air Seoul signed a merger agreement on August 21, 2026.
Once the integration is completed, the combined carrier is expected to operate a fleet of 58 aircraft, exceeding T'way Air's 46 and Jeju Air's 45 to become the largest domestic LCC.
Parent company Korean Air is cited as a competitive advantage for Jin Air through aircraft leasing cost efficiency and potential business and financial support.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩306.1B | -₩42.3B | −13.8% |
| 2025Q3 | ₩304.3B | -₩22.5B | −7.4% |
| 2025Q4 | ₩352.8B | -₩12.6B | −3.6% |
| 2026Q1 | ₩423B | ₩57.6B | 13.6% |
| 2026Q2 | ₩360.3B | -₩73.1B | −20.3% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩593.4B | -₩67.3B | -₩49.4B | −11.3% | −45.3% | 607.9% |
| 2023 | ₩1.3T | ₩182.2B | ₩133.9B | 14.3% | 93.6% | 566.0% |
| 2024 | ₩1.5T | ₩163.1B | ₩95.7B | 11.2% | 41.4% | 430.6% |
| 2025 | ₩1.4T | -₩19.2B | -₩9.8B | −1.4% | −4.3% | 423.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Jin Air's annual results have swung sharply amid post-pandemic travel demand recovery and fuel/FX volatility. In 2022, revenue was KRW 593.4 billion with an operating loss of KRW 67.3 billion and a net loss of KRW 49.4 billion, still burdened by pandemic effects.
In 2023, revenue jumped to KRW 1.277 trillion, with operating profit of KRW 182.2 billion (14.3% operating margin) and net profit of KRW 133.9 billion, marking a clear profit recovery.
In 2024, revenue reached KRW 1.461 trillion with operating profit of KRW 163.1 billion (11.2% margin) and net profit of KRW 95.7 billion, extending the earnings improvement.
However, 2025 saw revenue decline to KRW 1.381 trillion, with an operating loss of KRW 19.2 billion and a net loss of KRW 9.8 billion, turning the company back into losses.
On a quarterly basis, the operating loss narrowed from KRW 42.3 billion in Q2 2025 to KRW 22.5 billion in Q3 and KRW 12.6 billion in Q4, before flipping to a profit in Q1 2026 with revenue of KRW 423.0 billion, operating profit of KRW 57.6 billion, and net profit of KRW 21.7 billion.
But in Q2 2026, while revenue continued to grow to KRW 360.3 billion, the operating loss widened to KRW 73.1 billion and the net loss to KRW 67.5 billion, offsetting most of the profit generated in the prior quarter.
On a trailing four-quarter basis (Q3 2025 through Q2 2026), the net loss stands at roughly KRW 85.6 billion, still in loss territory.
In its Q2 earnings release, the company explained that "revenue growth continued in the second quarter, but the loss widened as operating costs rose due to higher fuel expenses from high oil prices."
Korea's LCC industry has faced a double burden of high oil prices, driven by Middle East tensions, and a weaker won in 2026.
All three Hanjin-affiliated LCCs suffered severe earnings deterioration in the second quarter due to high fuel costs and exchange rates, with Jin Air posting an operating loss of KRW 73.1 billion and Air Busan an operating loss of KRW 35.5 billion.
Structurally, the merger date for Jin Air, Air Busan, and Air Seoul was set for March 17 of next year, timed to align with the December 17 completion of the Korean Air-Asiana Airlines integration.
This marks the first time in Korean aviation history that full-service and low-cost carrier restructuring are occurring simultaneously.
Once the integration is complete, some analysts expect competitive intensity in short-haul markets to ease and average fares to rise gradually as the number of competing carriers shrinks.
Hana Securities stated that it expects market recovery from 2027, with reduced supply and rapidly recovering demand creating a favorable environment for LCCs. However, there is also a view that financially weaker low-cost carriers could face restructuring, meaning the industry reshuffle remains an ongoing process.
In Busan, opposition to Air Busan being absorbed into Jin Air remains strong, which stays a variable in the broader industry restructuring.
Jin Air signed a merger agreement with Air Busan and Air Seoul on August 21, 2026, and the three companies plan to hold extraordinary shareholder meetings in December to approve the merger plan, then pursue final regulatory approvals under the Aviation Business Act to launch the combined carrier on March 17, 2027.
The merger ratio was set at 1 for Jin Air, 0.2862684 for Air Busan, and 0.7501939 for Air Seoul.
A key gateway for the integration is unifying safety operating systems; Jin Air plans to gradually integrate fleet, flight operations, and maintenance infrastructure based on its existing operating certificate, and to pass the Ministry of Land, Infrastructure and Transport's safety operating system change inspection before launch.
On the fleet side, Jin Air will take delivery of its first Airbus A321CEO, previously operated by Asiana Airlines, on September 10, 2026, followed by sequential deliveries of A321neo and other new aircraft to shift its Boeing-centered fleet toward Airbus.
On routes, the company has announced new service to Incheon-Kobe and Incheon-Yichang and the resumption of the Incheon-Yantai route.
The company expects some profitability improvement in the second half from peak-season passenger demand and stabilizing fuel prices and exchange rates, even as Middle East uncertainty persists. Hana Securities maintained a BUY rating and a target price of KRW 7,000 on Jin Air in its May 19, 2026 report.
However, the three-way integration still faces significant challenges, including workforce reallocation, manual unification, and reservation/IT system consolidation as routes, organizations, and fleets are merged, with integration costs and labor negotiations remaining variables.
Jin Air's share price has reflected an earnings trajectory that moved through a profit recovery phase in 2023-2024 before turning to losses again in 2025. In 2026, quarterly volatility has continued, with a profitable first quarter followed by a large loss in the second quarter.
The current share price trades at a level that carries a certain premium relative to net asset value, a relationship best judged against trading multiples seen during the prior profit-recovery period.
The company currently pays no dividend, which can be interpreted as capital being directed first toward fleet renewal and balance sheet restructuring tied to the merged LCC launch rather than shareholder returns.
Hana Securities has stated that it set its target price based on forward earnings estimates, incorporating expectations of market recovery and merger synergies into its valuation approach.
How the market values the stock going forward may depend on the pace of integration and whether fuel prices and exchange rates stabilize.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Once the three-way integration is completed in March 2027, the combined carrier will become Korea's largest LCC with 58 aircraft, expected to yield scale economies in maintenance, procurement, and pilot training. There is also room to reduce inefficiencies and reallocate slots by adjusting overlapping routes.
Some analysts note that competitive intensity in short-haul markets could ease as the number of rival carriers shrinks.
Jin Air is introducing the Airbus A321 family for the first time in its history, increasing the share of fuel-efficient new aircraft in its fleet. The A321neo is said to reduce per-seat fuel burn and carbon emissions by roughly 20% versus the previous generation.
Its seating capacity also exceeds that of the Boeing 737 family by more than 10%, offering room to expand available seat supply.
Jin Air benefits from aircraft leasing cost competitiveness and potential business and financial support through parent company Korean Air. In the first half of 2026, revenue reached a record half-year high of KRW 783.3 billion. Underlying passenger demand has also remained resilient, a favorable supporting factor.
In Q2 2026, despite revenue growth, the operating loss widened to KRW 73.1 billion due to higher fuel costs from elevated oil prices. As long as Middle East instability persists, jet fuel prices and the won-dollar exchange rate could continue to shake results. As seen in the swing from a Q1 profit to a Q2 loss, quarterly volatility remains very large.
The three-way integration must pass through numerous procedures, including route, organizational, and fleet consolidation, IT system unification, and safety operating system change inspection, and remains at an early stage.
In Busan, strong opposition to Air Busan's absorption into Jin Air means regional social conflict remains a variable for the integration timeline. Integration costs and labor union negotiations are also cited as unresolved challenges.
On a consolidated basis, the debt-to-equity ratio stood at 423.2% in 2025 and reached 566.0% in 2023, reflecting a persistently high debt load relative to equity. Given the industry's heavy aircraft-lease liabilities, sensitivity to interest and exchange-rate movements remains elevated.
Financially weaker low-cost carriers in the broader industry are also cited as candidates for restructuring, underscoring sector-wide financial risk.
If high oil prices from Middle East instability coincide with a weaker won, dollar-denominated costs such as fuel and lease payments could rise sharply, quickly eroding profitability. The Q2 2026 results are a clear example. A simultaneous reversal in oil prices and the exchange rate could again swing earnings quickly.
The three-way merger must clear extraordinary shareholder meeting approval in December and regulatory approval under the Aviation Business Act, as well as passing the safety operating system change inspection from the Ministry of Land, Infrastructure and Transport. Delays or conditions imposed during this process could affect the targeted March 2027 launch timeline.
Civic groups in Busan have opposed Air Busan's absorption into Jin Air, citing concerns over the loss of a regional hub carrier. Ahead of the planned opening of Gadeokdo New Airport, regional conflict over route and fleet allocation could intensify.
Jin Air is scheduled to take delivery of its first Airbus A321CEO, previously operated by Asiana Airlines, marking its first non-Boeing aircraft; the subsequent airworthiness inspection and test flights before commercial deployment are worth monitoring.
Once Q3 2026 results are disclosed, it will be possible to check whether peak-season demand and stabilizing fuel/FX conditions actually translated into improved earnings; note these results are not yet confirmed and the disclosure date and figures should be verified separately.
Jin Air, Air Busan, and Air Seoul are each scheduled to hold extraordinary shareholder meetings to approve the merger plan, the first gateway in the integration timeline.
The scheduled completion date for the Korean Air-Asiana Airlines integration, which could influence the pace and direction of the LCC merger process.
The targeted launch date for the combined Jin Air entity, contingent on regulatory approval and passing the safety operating system change inspection.
Jin Air is in the process of being reshaped into Korea's largest combined LCC through its merger with Air Busan and Air Seoul, targeted for completion in March 2027.
The company saw clear profit improvement in 2023-2024 on the back of recovering travel demand, but swung back to losses in 2025, and in 2026 has alternated between a profitable first quarter and a large second-quarter loss, showing that results remain highly sensitive to fuel prices and exchange rates.
Once integration is complete, the combined carrier will hold a dominant position in fleet size and route network, but execution challenges remain significant, including route, organizational, and system integration as well as managing relations with the Busan community.
On the fleet side, Jin Air is in the process of introducing Airbus aircraft for the first time in its history in an effort to improve fuel efficiency. Its balance sheet continues to carry a high debt ratio, leaving it sensitive to fuel and exchange-rate swings.
Future earnings and valuation may hinge on the pace of integration, trends in global oil prices and the won-dollar exchange rate, and the degree of passenger demand recovery in the second half. This report does not present a specific investment opinion or target price, and buy or sell decisions are left to the reader.
Report written 2026-09-05 · Data as of 2026-09-04
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