Earnings Report /
Thailand

Asia Aviation PCL: Phoenix rising from the ashes

  • Shallower QoQ core loss

  • AAV posted a 3Q22 net loss of Bt4,050m

  • Revenue shot up by 2,733% YoY and 79% QoQ

Bualuang Securities
15 November 2022

The airline industry is recovering fast. We expect AAV to report a slim profit for 2023 and normalized earnings for 2024. And once Beijing drops its quarantine-on-re-entry rules, the stock price will surge. AAV’s bottom-line has bottomed out and we anticipate a sustained strong recovery through 2023. BUY!

Shallower QoQ core loss

AAV posted a 3Q22 net loss of Bt4,050m, 93% deeper YoY into red but shallower by 14% QoQ. The reported red ink was 12% deeper than we had expected (a higher cost-of-sales and bigger extra losses than assumed). Stripping out extra items, the core loss would be Bt1,178m, deeper into the red by 14% YoY but 49% shallower QoQ. The core number was 8% deeper into the red than our estimate (a heavier cost-of-sales than assumed).