The share price of Airports of Thailand Public Company Limited (SET: AOT) continued to plunge further as the afternoon session on Friday progressed, extending loss from about 9% at the open in the afternoon to now 17% as the market is drawing to a close.
According to Tisco Securities’ analysis, the main concern lies in an increase in long-term account receivable, which is linked to King Power’s MAG payments due between August 2024 and February 2025. With the request for a delay payment, King Power agreed to incur an 18% penalty on each deferred monthly payment. While AOT has confirmed that these payment delays will not impact operations—citing full coverage through bank guarantees.
Beyond the immediate concerns surrounding King Power’s payment deferrals, several key strategic initiatives are in progress:
The Passenger Service Charge (PSC) is currently under joint review by AOT and the Civil Aviation Authority of Thailand (CAAT). This internal study, expected to take an additional three months. The PSC increase will potentially include the future projects in addition to the increased cost of operation.
AOT has outlined upcoming Public-Private Partnership (PPP) opportunities, including:
- A third operator bid for ground and cargo services at Suvarnabhumi Airport (BKK), with contract signing targeted for October 2025
- A second operator bidding process for ground and cargo handling at BKK, scheduled to commence in 2026
- Expansion into Maintenance, Repair, and Overhaul (MRO) services
- Exploration of new airport development opportunities
However, adding to the company’s challenges, the proposed transfer of three airports remains stalled, pending Department of Airports (DOA) approval.
