At the end of the morning session on Wednesday, the share price of Asia Aviation Public Company Limited (SET: AAV) rose by 3.65% or THB 0.05 to THB 1.42, with a trading value of THB 54.61 million.
Bangkok Airways Public Company Limited (SET: BA) surged by 2.53% or THB 0.40 to THB 16.20, with a trading value of THB 36.58 million.
Airports of Thailand Public Company Limited (SET: AOT) gained 1.33% or THB 0.50 to THB 38.00, with a trading value of THB 576.19 million.
KGI Securities (Thailand) noted that as the Federal Aviation Administration (FAA) elevated Thailand’s aviation standards to CAT1, such circumstance is a positive development for the Thai tourism sector in the near term. However, the analyst does not anticipate immediate benefits for Thai airlines, as direct long-haul flights are unlikely to commence straight away, given the pre-set flight schedules (planned six months).
Nonetheless, the upgrade by the U.S. FAA marks a significant positive turnaround for the Thai aviation sector, after Thailand’s downgrade to CAT2 in 2015. This enhancement could open up future business opportunities for Airports of Thailand (AOT), Thai Airways (THAI) (currently under rehabilitation and expected to resume trading in July 2025), and Bangkok Airways (BA).
Additionally, there could be indirect positive effects for low-cost airlines, likely to experience increased tourist connectivity, including Asia Aviation (AAV). The development may also benefit Thai-based hotel chains such as ERW and CENTEL.
At present, KGI Securities recommends top-pick stocks connected to the tourism sector, including AAV (rated Outperform, target price THB 3.60) and ERW (rated Outperform, target price THB 5.20).
