Korea Airport shares soar on report
Shares of Korea Airport Service Company, the nation’s largest aircraft maintenance company, gained the most in almost a year after it said quarterly profit rose 59 percent on increased air travel.Korea Airport climbed as much as 9.2 percent to 54,000 won at a close in Seoul. The company’s net income rose to 12.3 billion won ($14 million) in the three months ended Sept. 30, while sales climbed 18 percent to 82 billion won, it said in a statement.
“The company is benefiting from higher travel demand, which means more aircraft maintenance work,” said Ryu Je-hyun, an analyst at Mirae Asset Securities in Hong Kong. “Also, it raised ground-handling charges for this year.”
Economic growth in Asia has boosted aircraft use and the need for maintenance. Korea’s main Incheon International Airport handled 22 percent more flights in the first nine months of this year than in the same period in 2006.
Korea Airport gets close to 75 percent of its sales from maintenance and fueling services. Bloomberg
with the Korea JoongAng Daily
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