Thai Airways takes off on April 10, 2014 at London Heathrow Airport, London, UK.
Record tourist arrivals to Thailand that buoyed shares of hotels and the nation's airports operator haven't boosted the country's four listed carriers. Investors eyeing the laggard airline stocks, however, may do well to reconsider.
Bangkok Airways Pcl and Thai Airways Pcl have each fallen more than 20 percent since the start of 2017, while the Stock Exchange of Thailand's gauge of hotel stocks rallied 26 percent. Budget carriers Nok Airlines Pcl and Asia Aviation Pcl have also underperformed compared with companies in the SET Tourism and Leisure Index. The slump may continue, as rising fuel costs add to a squeeze from industry competition.
'Airlines have already faced a tough situation with fierce competition, which has been a reason for their lackluster earnings,' said Siam Tiyanont, an analyst at Phillip Securities (Thailand) Pcl. 'The uptrend in fuel prices will add another challenge for them.'
Oil futures in New York have risen about 50 percent from their low last June and closed at the highest in more than three years on Jan. 11 as the Organization of Petroleum Exporting Countries and its allies curb supply to drain a worldwide glut.
Read full article at TheJarkartaPost: http://www.thejakartapost.com/travel/2018/01/15/even-record-tourism-hasnt-boosted-thai-airlines.html
Mekong Tourism Coordinating Office published this content on 18 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 February 2018 01:10:01 UTC.