Air Busan에어부산

Air Busan is loss-making and its share price has fallen about 22% over the past year, while it prepares for a merger with Jin Air.

Air Busan reported a trailing twelve-month net loss of about ₩160B on revenue of ₩905B through H1 2026, with an operating loss of about ₩39B and liabilities at roughly 16x equity. The shares closed at ₩1,476 on 23 October 2026, near the low end of their 52-week range of ₩1,400 to ₩2,240. Filings show a merger decision, a trading halt and a shareholder meeting called in August 2026, and labor disputes are in the news.

What stands out

• Revenue fell 17.3% in 2025 to about ₩833B after a strong 2023 and 2024, and the business swung to an operating loss of about ₩4.5B in 2025.
• The trailing figures show a net margin of -17.7% and ROE of -145.1%, reflecting heavy losses against a small equity base.
• Borrowings are about ₩40B against cash of about ₩69B, and trailing free cash flow is slightly positive at about ₩0.4B.
• Filings in August 2026 include a merger decision, a trading halt and a shareholder meeting notice, with the merger partner named in news as Jin Air.
• Price-to-book is about 3.0x, while no earnings-based valuation is available because earnings are negative; no dividend is paid.
• Recent news centres on cabin crew and pilot labor disputes and union demands ahead of the integrated low-cost carrier launch.

What to watch

• The terms, timing and approval steps of the merger, as set out in the filed merger decision and shareholder meeting materials.
• Whether the labor disputes over working conditions and overtime pay are resolved or escalate ahead of the integrated launch.
• The next periodic results, to see if the operating loss narrows or widens from the trailing H1 2026 level.