AAV and BA traded higher on Thursday in response to a report that China plans to increase the number of international flights beginning October 30.
As of 12.30 A.M. (Thai time), the share price of Asia Aviation Pcl. (SET: AAV) rose THB0.18/share, or 6.04%, to THB3.16/share, with a trading value of THB260 million.
The share price of Bangkok Airways Pcl. (SET: BA) rose THB0.70/share, or 5.47%, to THB13.50/share, with a trading value of THB152 million.
China plans to increase the number of international flights operated by domestic and foreign airlines to 840 a week from October 30 to March 25. That’s a 106% increase from October 2021 to late March this year, but it’s still far below pre-pandemic levels.
The Civil Aviation Administration of China announced the plan on Wednesday, after earlier this month’s reports by the country’s leading airlines that they planned to increase international flights. The changes signal a slight softening of border curbs that have halted foreign travel and damaged the economy, but China is still enforcing tough COVID policy.
According to Finansia Syrus Securities (FSS), a surge in AAV and BA share prices has followed China’s latest plan to boost the number of international flights. FSS feels that both companies will benefit from this announcement because China is a large market and the increased flights will bring in more Chinese tourists. Domestic tourism also tends to increase during the peak travel season.
