AAV and BA continued a rally as the two airlines will resume their domestic flights in early September, 2021 after the government has lessened some COVID-19 restrictions.
As of 12:30 local time in Thailand, the share price of Bangkok Airways Public Company Limited (BA) rose ฿0.60/share or 5.17% to ฿12.20/share, with a trading value of 43 million baht.
The share price of Asia Aviation Public Company Limited (AAV) rose ฿0.12/share or 4.48% to ฿2.80/share, with a trading value of 105 million baht.
The Civil Aviation Authority of Thailand (CAAT) announced that some domestic flights to and from Bangkok and other high risk areas are allowed to re-operate from September 1, 2021, follows the easing of tough COVID-19 restrictions in 29 high-risk provinces from next month, including allowing traveling between provinces and the reopening of some shops and activities.
AAV is set to resume its domestic flight operations under strict travel conditions starting September 3, 2021. The resumed routes includes Bangkok – Chiang Mai, Chiang Rai, Phuket, Hat Yai, Nakhon Si Thammarat, Narathiwat, Khon Kaen, Udon Thani, Ubon Ratchathani, Nakhon Pathom and Roi Et
Meanwhile, BA announces the resumption of its five routes which are Bangkok – Samui, Bangkok – Chiang Mai, Bangkok – Phuket, Bangkok – Sukhothai and Bangkok – Lampang, starting from September 1, 2021 onwards.
LH Securities sees a rebound in domestic tourism, which would support AAV to speed up its recovery in 4Q21, giving a “BUY” rating with a target price of 3.45 baht.