ASL Securities recommends gradually accumulating THAI shares, viewing that although operational problems are weighing on short-term sentiment, earnings momentum has begun to recover since the fourth quarter of 2026, after the THAI board resolved to remove Mr. Chai Eiamsiri from his duties as CEO, appoint a committee to investigate allegations concerning procurement and management, and install an acting CEO to oversee operations. This is seen as a short-term negative sentiment issue stemming from uncertainty over management and governance, and the investigation's outcome and the process of selecting a new CEO bear watching. During the disruption, THAI cut 15 flights on October 1 and 9 flights on October 2, before preparing to restore all flights from October 3, and opened a 24-hour collection point for stranded baggage. Meanwhile, the Suvarnabhumi cargo warehouse temporarily suspended receiving goods until October 6. The impact on 2025 profit forecasts is seen as fairly limited if the situation does not drag on, because it occurred late in the third quarter, which is the seasonal low season, while the business fundamentals still have support from fleet expansion, network optimization, and yield management. In the first half of 2026, the company still posted an operating profit of 17.4 billion baht and an operating margin of 17.5%. The pressure from the CEO change and operational problems is assessed as a short-term overhang, but if THAI returns to full service and clears the baggage and cargo issues as planned, it will help limit the impact on profit, and the earnings trend should recover in line with the high season in the fourth quarter of 2026. The average target price from the IAA Consensus stands at 7.56 baht.
Thai Airways International Public Company LimitedBrokers recommend gradual accumulation with a 7.56 baht consensus target, citing recovering earnings momentum and a Q4 2026 high-season recovery.
