Bangkok Airways' Margin Squeeze Amid Weak Operating Performance
Bangkok Airways Faces Margin Squeeze Amid Weak Operations
Bangkok Airways is under margin pressure as its operating performance shows no clear improvement, according to UOB Kay Hian analysts. During an analyst meeting, management’s tone was reportedly negative.
Management admitted that previous fare-price hikes would not be enough to offset the increase in fuel costs. With the airline unable to fully pass on these higher costs to customers, margins could be squeezed starting from the second quarter.
Furthermore, travel demand remains weak despite improving air connectivity. The brokerage maintains a sell rating and a target price of 11.70 baht, while the shares are currently trading at 15.10 baht, up 4.9%.
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