Thai Airways shares take off again after 5-year pause
Analysts predict soaring value as the national carrier exits court-led rehabilitation
After five years of being grounded, Thai Airways (THAI) shares are finally cleared for takeoff.
Trading of the national carrier’s stock will resume on the Stock Exchange of Thailand (SET) yesterday, August 4, marking a significant milestone in the airline’s dramatic recovery from one of the biggest corporate meltdowns in Thai history.
The move follows THAI’s exit from court-supervised debt restructuring, which saw the state-controlled airline climb out of a staggering US$12 billion (around 432 billion baht) debt hole. Once on the brink of collapse during the Covid-era travel shutdowns, the airline is now soaring on the back of a post-pandemic tourism surge.
The national airline ended its rehabilitation in June after reporting surging earnings and successfully raising capital through new share sales.
“Thai Air’s valuation deserves a premium due to its successful business rehabilitation,” said Raweenuch Piyakriengkai, an analyst at InnovestX Securities.
“The company’s restructuring has firmly established a high earnings baseline and significantly enhanced future competitiveness.”
InnovestX gives the stock an “outperform” rating with a price target of 7.8 baht, while CGS International Securities sets the target at 10.80 baht, according to Bloomberg.
The airline sold new shares to existing shareholders at 4.48 baht each late last year. The stock was last traded in May 2021.
THAI has seen its earnings rebound sharply, reporting a fourfold increase in first-quarter net income year-on-year, driven by a rise in passenger numbers of over 11%. Strong demand continues into the second quarter, with bookings to Europe, Australia and India seeing particularly high growth, said CEO Chai Eamsiri in May.
As part of its turnaround plan, about 53 billion baht of debt was converted into equity, and the company raised an additional 23 billion baht from new share sales to bolster its capital base, reported The Business Times International.
With international travel roaring back and THAI shedding billions in debt, investors and analysts alike are betting the airline is entering a new era of profitability — and this time, it may just stay airborne.
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Pity their customer service betrayed loyal Royal Orchid Members. I had a Thai Gold Card for years, enjoyed flying with them from Perth to Bangkok and all our holidays around Asia were flown on Thai Airways. But when the Pandemic hit, we all understood no flying and no miles. But what I didn’t expect, was the loss of my miles after it. Thai Air flew only from Melbourne and Sydney, not Perth. They took my miles, I cancelled my membership. Now I fly on their competitors, cheaper flights.