Airports of Thailand PCL (SET: AOT) announced an increase in the Passenger Service Charge (PSC) which will be effective from 1 Apr 2024 onward. The international outbound PSC will be adjusted from THB 700 to 730 per passenger, while the domestic outbound will be adjusted from THB 100 to 130.
AOT’s President, Mr. Kerati Kijmanawat, cited the recent cost increase of the Common Use Passenger Processing Systems (CUPPS), which was implemented to upgrade its service speed in all of its 6 airports, which are Suvarnabhumi, Don Mueang, Chiang Mai, Chiang Rai, Mae Fah Luang and Phuket. The system’s components are the Common Use Terminal Equipment (CUTE), the Common Use Self Service (CUSS) and the Common Use Bag Drop (CUBD). These will allow faster loading and up to 6 to 12 hours of advanced self check-in.
The President said CUPPS is counted as the Aeronautical charge, which should be taken into the account of PSC according to the law. The revenue from those fees will be used on further upgrade AOT services.
Pi Securities estimates AOT 2024 profit at THB 27 billion or will grow by more than 200%, citing the 140 million passenger level as before the Covid-19 pandemic, while the foreign tourists will be increased by 30% to 35 million headcount. Pi’s analysts still recommend buying AOT at the target price of THB 78 per share, citing the almost no change in its cost (YoY), while its revenues are very likely to increase which is estimated around THB 74 billion.
Pi’s analysts also cited AOT clarification on 24 Nov. The new PSC is still under the feasibility study. It will be charged from the airlines which will pass through the ticket prices. However, the analyst sees no impact on AOT revenue since THB 30 is not a significant increase compared to the usual ticket price. Furthermore, AOT has once increased PSC after the opening of SAT-1 terminal at Suvarnabhumi airport, which increased AOT cost and PSC increased from THB 500 to 700 per passenger.
Phillip Securities estimates AOT 2024 revenue at THB 70.5 billion and its profit at THB 23.7 billion, citing 135 million passengers and almost unchanged cost. Meanwhile, AOT’s pandemic support measures to its commercial rentee has ended since March 2023, and the payment calculation method will be switched back to the “Sharing per head” method which is a positive AOT.
