TISCO Securities wrote that the outlook for Airports of Thailand Public Company Limited (SET: AOT) in 2027 is strengthening, driven by a rise in passenger volumes in line with tourism demand, improved aircraft landing and take-off slot utilization, and new revenue opportunities from ground services and cargo handling by AOTGA.
Furthermore, the duty-free business is showing signs of greater stability, with potential for further growth from the resumption of inbound duty-free services. These factors underpin an upward revision in profit estimates and a more positive outlook for AOT.
For the winter airline schedule from October 2026 to March 2027, management expects a reduction in flight cancellations, despite current slot bookings rising only 1%. This is attributed to easing delays in aircraft deliveries and improved airline operational management compared to the previous year.
Additionally, Thai Airways International Public Company Limited (SET: THAI) has confirmed its route expansion plan, which is expected to enhance flight capacity over time. This will result in greater slot efficiency, increased flight frequency, and robust passenger volume growth, anticipated to expand by approximately 8.8% in 2027.
AOTGA, which has been approved as the third ground services and cargo operator at Suvarnabhumi Airport, will help alleviate operational constraints and support long-term growth in flights and passenger numbers. It will also enhance slot availability and competitiveness in the airport services market.
TISCO estimates the new AOTGA concession could generate approximately THB 500 million annually for AOT through shared revenue and profit contributions from joint ventures, representing a key driver of future growth.
The return of inbound duty-free services is considered an additional positive factor, expected to increase AOT’s annual profits by around THB 600 million. Surveys indicate strong passenger support for the resumption of this service. If approved, AOT will benefit from a revenue-sharing concession model, boosting non-aeronautical revenue and diversifying income sources beyond aviation services.
Given the positive trends in passenger numbers and concession revenues, TISCO has raised AOT’s profit forecasts for 2026–2028 by 5–6%. Profits in 2027 are projected to grow 58%, driven by an increase in the international outbound passenger service charge, growth in both international and domestic passenger numbers, and higher minimum guarantee revenue from the duty-free business.
Following these, TISCO has upgraded its rating on AOT from ‘Hold’ to ‘Buy’ and raised its fair value estimate from THB 64.00 to THB 75.00 per share, reflecting stronger operational performance and growth potential.
