[Feature Stock] Korean Air, expected to benefit from sharp decline in oil prices and won appreciation, rises over 6%

Korean Air shows strength due to expectations of improved profitability driven by a sharp drop in international oil prices and a strengthening Korean won.

According to the Korea Exchange, Korean Air rose 1,600 won (6.52%) from the previous trading day, closing at 26,150 won.

The same airline sector, including Hanjin Group, Jeju Air, Jin Air, and Asiana Airlines, also collectively increased. Market attention is focused on the fact that, as expectations for the resumption of peace talks between the U.S. and Iran heat up, oil prices and exchange rates are moving favorably for the airline industry.

Previously, international oil prices plummeted due to progress in U.S.-Iran negotiations. West Texas Intermediate (WTI) crude fell by 7.9%, and Brent crude dropped by 4.6%. President Trump halted the “Freedom Plan” escort operation through the Strait of Hormuz just two days after launching it, hinting at the possibility of reaching a peace agreement, which impacted oil prices.

Airlines have high fuel costs and heavy dollar-denominated expenses such as aircraft leasing fees. Therefore, when oil prices fall and the Korean won weakens against the dollar simultaneously, expectations for improved profitability increase.

However, some also believe that geopolitical risks still exist. Iran continues to maintain a de facto blockade of ships passing through the Strait of Hormuz, and uncertainties remain alongside optimistic sentiments about negotiations.