On Monday at 3:02 PM (Bangkok time), the share price of Asia Aviation Public Company Limited (SET: AAV) declined by 2.13% or THB 0.06 to THB 2.76, with a trading value of THB 419.75 million.
AAV’s share price underwent a slight recovery after an initial decline of approximately 5% during the morning session to THB 2.64 per share.
Finansia Syrus Securities (FSS) highlighted that the earlier drop was linked to issues with the AirAsia MOVE application, operated by Capital A.
AirAsia MOVE recently introduced a new product utilizing an algorithm to provide clients with optimal flight ticket options from AirAsia and various online travel agents (OTAs), including MOVE.
Meanwhile, challenges emerged with the transaction system, particularly with debit card transactions, as the refund process necessitated clients to email their account details manually, while inadequate communication resulted in some clients not receiving notifications about the procedure, exacerbating the issues.
The company has discontinued the transaction method and will proceed to refund its clients. The estimated maximum number of clients impacted by the issue is set at 100,000, as per the analyst’s observation, indicating that this figure is not considered significant given that AAV’s average annual client base ranges between 20 to 21 million.
Following the 5% drop in AAV’s share in the morning session, FSS views the decline as a favorable opportunity for traders and issues a ‘BUY’ recommendation, anticipating a resolution to the ongoing issue. The analyst highlights the company’s robust performance in 4Q24 with a 6% year-on-year increase in passenger volume from October to November. The volume is projected to surpass 5.5 million in 1Q25, supported by strong load factors of 92% for domestic flights and 84% for international routes.
