Thai Airways’ shares take off as load factors improve
Thai Airways' shares soared 5.7% on Friday as the carrier reported rising demand and load factors last month (albeit off last year's low base).
Thai Airways ASK growth and RPK growth: Jun-2009 to Jun-2010
Source: Centre for Asia Pacific Aviation & Thai Airways
Thai Airways passenger load factor: Jun-2009 to Jun-2010
Source: Centre for Asia Pacific Aviation & Thai Airways
Broker Julius Baer has downgraded its rating on Thai Airways to 'hold' from 'buy', citing the airline's recent share price rally. The carrier's shares have gained around 20% over the past month, on the improving outlook for visitor arrivals to Thailand.
Thai Airways' share price over past month
Source: Centre for Asia Pacific Aviation & Reuters
Thai Airways President Piyasvasti Amranand stated last week that passenger revenue has "improved to a satisfactory rate", increasing by 10% year-on-year since the end of Jun-2010. He added load factors in the first nine days of Jul-2010 increased to 72% and advanced bookings for the rest of July "look quite good".
Elsewhere, Australia's SkyWest soared 8% on Friday, China Eastern rose 2.2% and EVA Air fell 2%.
Asia Pacific selected airlines daily share price movements (% change): 16-Jul-2010
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times