AirAsia Group rises to highest in a year

KUALA LUMPUR (March 15): AirAsia Group Bhd’s share price rose to its highest in a year after climbing 12 sen or 10.43% to RM1.27 so far today as Covid-19 vaccine-driven economy recovery expectations led to anticipation of a revival in the aviation sector, which had contended with the impact of Covid-19 pandemic-led global movement restrictions.

On Bursa Malaysia, AirAsia Group had pared gains at RM1.25 at 10.08am, with some 65 million shares traded, as investors weighed news including the budget airline’s confirmation that its indirect 45%-owned associate Thai AirAsia Co Ltd’s confirmation that it will restart 40 domestic routes in Thailand this April, signifying a solid return to pre-Covid-19 performance levels for the airline.

At RM1.25, AirAsia Group had a market value of about RM4.64 billion based on the company’s 3.71 billion issued shares. The stock’s price had risen to current levels after falling to 52 sen on March 19, 2020.

TTR Weekly, quoting Thai AirAsia chief executive officer (CEO) Santisuk Klongchaiya, reported today that the resumption of services includes all flights from Bangkok’s two airports, Suvarnabhumi and Don Mueang, and 14 routes across the nation.

“From April 1, 2021, AirAsia will be increasing frequency on popular routes, such as from Don Mueang to Chiang Mai with 13 daily flights, Phuket (11 daily flights), Hat Yai (eight), Surat Thani (six) and five daily flights to Chiang Rai, Khon Kaen and Udon Thani respectively. AirAsia will also reinstate five routes from the Suvarnabhumi Airport to Chiang Mai, Nan, Phuket, Hat Yai and Nakhon Si Thammarat,” TTR Weekly reported.

Santisuk said Thai AirAsia is very encouraged by pent-up demand for air travel in Thailand and also very proud to be part of the tourism industry revival in the country.

“AirAsia has been closely monitoring the Covid-19 pandemic, and we are very pleased to be able to increase our flight services in view of the improving situation,” he said.

According to news reports, Thai AirAsia had suspended international flights since March 22, 2020 as global borders remained closed to curb the spread of the pandemic.

AirAsia Group’s website shows that the group via 100%-owned subsidiary AirAsia Investment Ltd owns a 45% stake in Thai AirAsia.

Source: TheEdgeMarkets