AAV–BA Fall Sharply after Announcing Operations Halt on Tougher Covid Measures Impose
AAV and BA plummeted in the morning session, following the announcement of an extension of the period for temporarily suspending operations due to the Covid-19 outbreak.
AAV and BA plummeted in the morning session, following the announcement of an extension of the period for temporarily suspending operations due to the Covid-19 outbreak.
2 ส.ค. 2564

The shares of Asia Aviation (AAV) and Bangkok Airways (BA) plummeted in the morning session on Monday, August 2, following the announcement of an extension of the period for temporarily suspending operations due to the Covid-19 outbreak.
As of 11:50 local time in Thailand,  Asia Aviation Public Company Limited (AAV) dropped ฿0.20/share or 8.40% to ฿2.18/share, with a trading value of 77 million baht.
Meanwhile, Bangkok Airways Public Company Limited (BA) dropped ฿0.25/share or 2.56% to ฿9.50/share, with a trading value of 6 million baht.
KTBST Securities (KTBST) believes AAV is the market’s worst performer, owing to a slower-than-expected recovery in passenger numbers. Moreover, AAV has announced an extension of the period for the temporary suspension of all scheduled domestic commercial flight operations beginning July 12, 2021, through August 8, 2021, in support of Thailand’s containment efforts, as well as the stoppage of staff paychecks in August.
If the situation worsens, AAV will be required to suspend operations for a longer duration. As a result, KTBST suggests “SELLING” AAV in the near term to minimize risk. However, AAV is now restructuring the company. It is anticipated that it will receive the first financing in September, which will be utilized to increase liquidity and pay employee salaries.
Kasikorn Securities (KS) stated that AVV’s temporary suspension will result in zero profit and will result in the company halting to pay its employees’ salary, forcing those employees to wait for social security compensation instead.     
AAV is predicted to lose 1.4 billion baht in 2Q21, with the first half of this year’s deficit accounting for about half of KS’s full-year projection. KS maintains a “HOLD” recommendation on AAV with a target price of 2.97 baht following the continuation of the operation suspension. Additionally, KS obsesses about AAV’s financial status as a result of the ongoing Covid-19 epidemic.
Meanwhile, BA will temporarily suspend its Samui-Phuket route from August 3, 2021, in response to Phuket Province’s implementation of tougher Covid-19 control measures.