Earnings Report /
Thailand

Bangkok Airways: Deep net loss reported; recovery to start in 4Q21

  • 3Q21 core loss was in line with our estimate

  • BA reported a 3Q21 net loss of Bt6,977m

  • Revenue dived by 42% YoY and 30% QoQ

Bualuang Securities
15 November 2021

The termination of the SPF contract should benefit BA over the long haul. The company may also build future operating synergies with U-Tapao Airport (BA 45%, BTS 35%, and STEC 20%). Moreover, we expect the recovery of air traffic to generate broadly positive sentiment toward airline stocks. BUY!

3Q21 core loss was in line with our estimate

BA reported a 3Q21 net loss of Bt6,977m, deeper in to red by 345% YoY and 917% QoQ. That red ink was much deeper than our estimate (a heavier extra loss than assumed). Stripping out extra items, the core loss would be Bt1,346m, little-changed YoY but 73% deeper QoQ. The core loss was in line with our estimate.