Asia Aviation Public Company Limited (SET: AAV) is on its sixth day winning streak in response to growing positive signs of recovering tourism in Thailand.
The share price of AAV rose THB 0.04 or 1.45% to THB 2.80 per share after the opening bell on Tuesday. The company gained a total of 7.7% from the closing of THB 2.60 on March 20, 2023.
Earlier, the government spokesperson Traisuree Taisaranakul, reported that Thailand welcomed 5.57 million foreign arrivals from January to March 18 this year, which is already half of what the kingdom recorded for the whole year of 2022.
At the beginning of this year, Thailand had set its sights to receive 25 million tourist arrivals, but the Tourism Authority of Thailand noted late last week that arrivals could reach 30 million this year due to its fast-growing pace.
Tisco Securities stated that at the Investor Day, AAV stated that it plans to add five new aircraft per year to reach a 74-aircraft fleet by 2026 from the current level of 45.
Tisco Securities noted that AAV’s fleet expansion schedule is in line with its expectations for passenger growth in 2023-25. The expansion also removes a key overhang as AAV should have sufficient aircraft to serve future demand. Other guidance remains similar to AAV’s previous analyst meeting and the outlook for recovery remains intact. Maintain “BUY” recommendation with a target price at THB 3.50 per share.
