Korean Air ranks No. 1 in Asian air cargo, Hana keeps Buy rating

  • Hana Securities retained its Buy rating and 41,000-won target for Korean Air.
  • Korea-U.S. air cargo exports rose 27% year over year in the first half.
  • Korean Air cargo is expected to drive profits during 2026-2027, before further gains from 2028.

Korean Air is recording the highest air cargo transport volume among Asian airlines, while Hana Securities expects its combination with Asiana Airlines’ cargo division, Valley Cargo, to create Asia’s leading cargo operator. Hana retained its Buy rating and 41,000-won target price, implying roughly 35% upside from the previous close of 30,350 won. Korea-U.S. air cargo exports rose 27% year over year in the first half, led by semiconductor equipment, IT products, automotive parts, fresh food and cosmetics. Limited wide-body aircraft availability, Incheon’s hub position and expanding long-term contracts are supporting freight rates and earnings stability. Korean Air reported standalone second-quarter operating profit of 261.8 billion won, the only South Korean airline to post a profit, as cargo rates rose 42% year over year versus an 11% increase in international passenger fares. Analysts also cite support from a weaker won, sustained passenger demand and the Chuseok holiday, while Hana expects cargo to drive profits in 2026-2027 and passenger premiumization, MRO, aerospace and defense to add upside from 2028.

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