Thai Airways International

Thai Airways International Plc (THAI)

The active travelling season of 1Q could swing THAI back into profitability but sustainability is questionable. Sell into share price strength. Competition, a slowdown in the Western economies and elevated oil prices will remain strong headwinds for the airline. We maintain our forecasts, target price (0.75x CY12 P/BV - derived from ROE forecasts) and Neutral call. To capture the promising Thai tourism sector, Airports of Thailand (AOT) is a better bet.