On Thursday, the share price of Asia Aviation Public Company Limited (SET: AAV) at the time of 10:46 a.m. was at THB 0.86, a THB 0.10 or 10.42% decrease with a total trading value of THB 197.16 million
Krungsri Securities has expressed a negative outlook on AAV following reports highlighting financial position risks surrounding the broader AirAsia group. While the brokerage assesses that Thai AirAsia—a wholly owned subsidiary of AAV—will experience no direct impact on its day-to-day business operations, indirect risks require close monitoring.
Key operational risks include the potential loss of competitive advantages derived from the AirAsia group’s route network, reduced leverage in aircraft procurement negotiations, and diluted intra-group commercial cooperation. A further deterioration in AirAsia’s financial health could ultimately impair Thai AirAsia’s market competitiveness in the subsequent period.
Concerns over AirAsia’s financial position have prompted the Malaysian government to prepare contingency plans, inquiring with Malaysia Airlines and Batik Air regarding their capacity to absorb domestic routes and passenger volume if necessary.
AirAsia posted a net loss of MYR 831 million in the second quarter of 2026, burdened by current liabilities exceeding MYR 18.4 billion and overdue airport service fee obligations of at least MYR 500 million to Malaysia Airports Holdings Berhad (MAHB), alongside pressure from rising jet fuel prices.
To fund debt restructuring, AirAsia is currently accelerating efforts to raise up to $1 billion from overseas debt markets alongside a domestic credit facility of MYR 700 million. The carrier stated that the fundraising plan is sufficient for its needs and that operations continue as normal.
However, Krungsri noted that another key issue to monitor is the status of intra-group receivables. AAV’s second-quarter 2026 financial statement disclosed related-party receivables exceeding THB 14 billion, of which an estimated THB 7 to 8 billion (approximately THB 0.59 per share) is overdue. The analyst warned that these balances carry a risk of becoming non-performing debt if AirAsia’s situation deteriorates significantly, potentially creating downside risks to both earnings and AAV’s target price.
Furthermore, AAV is considered a relatively high-risk stock within the airline sector if conflict in the Middle East escalates, as it could impact jet fuel prices, operating costs, and international travel conditions.
Consequently, although AAV’s current stock price trades below Krungsri’s target price of THB 1.19, the brokerage maintains a non-investment recommendation and advises investors to closely monitor AirAsia’s financial risks and the Middle East situation.
