After remaining grounded for five turbulent years, the shares of Thai Airways (THAI) have finally lifted off once again. On August 4th, the Stock Exchange of Thailand (SET) welcomed the national carrier’s stock back to the trading floor, marking a pivotal moment in the airline’s epic turnaround journey. Emerging from what was once considered an enormous corporate meltdown, Thai Airways has navigated through a harrowing US$12 billion (about 432 billion baht) sea of debt. But with the post-pandemic tourism wave powering its sails, the airline now finds itself soaring high once more.
The airline bid farewell to its rehabilitation phase in June, basking in the glow of booming earnings and successfully drawing in additional capital through the strategic sale of new shares. “Thai Air’s valuation is deserving of a premium, given its victorious business rehabilitation,” stated Raweenuch Piyakriengkai, an astute analyst at InnovestX Securities. “The restructuring has provided a robust earnings baseline and bolstered future competitiveness.” InnovestX has bestowed the stock with an “outperform” rating and a price target of 7.8 baht. Meanwhile, CGS International Securities sets its sights even higher with a target of 10.80 baht, as reported by Bloomberg. Late last year, the airline sold new shares to its loyal shareholders at 4.48 baht each, marking its first trade since May 2021.
THAI has seen its profits soar to impressive new heights, with its first-quarter net income quadrupling year-on-year, buoyed by a remarkable 11% rise in passenger numbers. The demand continues to surge into the second quarter, with skyrocketing bookings to Europe, Australia, and India, as revealed by CEO Chai Eamsiri in May. As part of the airline’s ambitious revival roadmap, approximately 53 billion baht of debt was transformed into equity, allowing THAI to anchor its financial base further with an additional 23 billion baht raised from the fresh share sales, according to The Business Times International.
As international travel regains its momentum and Thai Airways successfully waves goodbye to billions in debt, both investors and analysts are confidently wagering on the carrier entering a fresh golden era of profitability. This time around, they believe, THAI is poised to maintain its altitude and keep the skies of prosperity firmly under its wings.
- Song Phi Nong: Drug tests lead to the dismissal of five officials.
- Bangkok: An unfortunate demise at a bus stop on Suwinthawong Road.
- Phuket: A major drug bust nets 6,000 pills alongside the ‘Ice Queen’ ringleader.
- Pattaya: A love triangle clash in a convenience store results in one injury.
- Chiang Mai: Missing girls found safe near a local school.
- National News: The shocking legal turn as the Thai government lifts the ban on poker.
This whirlwind of progress and activity illustrates that, like THAI, Thailand is abuzz with news, events, and developments, each contributing to a vibrant national tapestry.
It’s amazing how Thai Airways has managed to turn things around so dramatically. From the brink of disaster to flying high again! It just shows the resilience of the airline industry.
I’m not so sure about that. I think it’s more about luck and timing with the post-pandemic travel boom. How long can they ride that wave?
Maybe, but they did make some smart moves with restructuring and share sales. It’s about strategic decisions too, not just luck.
I’m thrilled to see Thai Airways back on the market. The new stock prices are a testament to efficient restructuring. However, can this financial model be sustained if another travel disruption occurs?
Sustainability is the keyword. The volatility of flying could unravel this progress quickly. THAI needs a robust contingency plan.
Agreed! They should consider diversifying their services. The reliance on post-pandemic tourism wave is risky.
Precisely! Stability will be essential moving forward. I’m optimistic though, given their revamped strategy and rising demand.
I’m skeptical about rushing to buy these stocks. What if this is just a bubble induced by current market euphoria?
I think you might be right. Historically, after a steep rise, there’s often a correction. Buyers should be cautious.
Still, THAI’s thorough restructuring is evident. We should give them credit for leveraging the current socio-economic climate efficiently.
What a comeback story! It gives me hope that other struggling companies can also see light at the end of the tunnel.
This recovery will definitely resonate in Southeast Asia’s airline market. Thai Airways setting a precedent might inspire competitors!
A rising tide lifts all boats. If THAI succeeds, maybe competitors will reform and what we’ll see is a stronger regional market overall.
Can they really keep this up? They’ve got to prove they can make consistent profits in the long run.
Agreed, but the recent rise in passenger numbers is a good start. They’ve weathered a huge storm already.
It’s about consistent performance now. They’ve laid the groundwork, let’s see if they can build on it.
I’m curious if the increase in tourism will sustain this new success. Markets are unpredictable now more than ever.
Investors need to remain shrewd. It’s easy to get swept up by numbers, but we must remember what led to their original downfall.
True, but one cannot ignore the effective leadership post-crisis. It’s a new chapter for them.
Isn’t every investment a risk? This one seems as calculated as any, with potential high returns.
Absolutely, and for that reason, people should weigh the potential returns against historical precedents.
The news on Thai Airways just made me consider planning a trip there! Their commitment to bouncing back gives me confidence in their service quality too.
People often forget how volatile the airline industry can be, especially with inflation affecting fuel prices.
The broader impact on the Thai economy is fascinating. With a national emblem like THAI thriving, it could cascade into more positive developments.
What about sustainability? Shouldn’t THAI incorporate eco-friendly practices to ensure its ongoing success?
Entering now might be a calculated risk for investors looking for quick gains before the market readjusts.
I’m cheering for Thai Airways! Not just because I used to fly with them, but because this redemption arc is truly inspiring.
I feel the same! A testament to perseverance.
Whether intentionally or not, Thai Airways just gave a case study on crisis management and comeback strategy.
True, business schools should definitely take note of their turnaround strategy.