S.Korean budget airlines rise on expectations of improving ties with Japan

Jin Air Co

25/11/2019 01:43

** Shares of South Korean budget airlines jump on hopes of
improving ties between Seoul and Tokyo after the two countries
agreed to have formal talks next month  urn:newsml:reuters.com:*:nL4N283051
    ** The announcement came after South Korea decided to stick
with its intelligence-sharing deal with Japan, a dramatic
reversal after months of strained relationship over wartime
history  urn:newsml:reuters.com:*:nL3N282170
    ** Shares of Tway Holdings  004870.KS  and T'way Air
 091810.KS  gain 8% and 6%, respectively, while JejuAir
 089590.KS  rises more than 5% 
    ** Shares of Air Busan  298690.KS  add over 3%, while Jin
Air  272450.KS  firms more than 2%
    ** Multiple South Korean airlines have halted their flights
to Japan in the face of lean demand amid the economic and
diplomatic row between the two countries  urn:newsml:reuters.com:*:nL4N24U1F8
    ** Despite the expectations of improving relations, South
Koreans' boycott of trips to Japan will show no signs of fading,
which will maintain downside pressure on budget airlines, says
Jung Yeon-seung, an analyst at NH Investment & Securities
    ** The broader KOSPI market  .KS11  advances 1.2% 
    

 ((Hayoung.Choi@thomsonreuters.com; +82 2 6936 1468))