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Summary
- Stocks of Thai Airways International Public Co Ltd (OTCPK:TAWNF) swelled by more than 54 per cent to close at US$ 0.31 apiece on Monday, May 17.
- The aviation stock has been recording quite a bit of a rally over the past week on the back of some speculations.
- TAWNF stock has swelled by 206 per cent over the past week.
Stocks of Thai Airways International Public Co Ltd (OTCPK:TAWNF) swelled by more than 54 per cent to close at US$ 0.31 apiece on Monday, May 17. The aviation stock has been recording quite a bit of a rally over the past week on the back of some speculations.
The airline company, like most in the aviation sector, has been reeling under the pandemic crisis since in 2020. In that light, Thai Airways is said to be looking into options to improve its financial condition at the moment.
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The company was set to hold a meeting for a vote on a debt restructuring program last week, which then got postponed. It is now expected to take place on Wednesday, May 19.
Thai Airways is reportedly burdened with over 300 billion baht (over C$ 11 billion) in debts and needs more than 50 per cent of its creditors to accept its rehab plan to stay in business.
Although it is not clear whether the government will offer a bailout to the company, rumors of a bailout package might be the reason behind the sudden spike in its share prices.
Notably, the state is not obliged to provide a bailout. Thai Airways Acting President Chansin Treenuchagron also reportedly asserted that the government is not under any obligation to take the role of a loan guarantor.
It is believed that the scheduled debt-related meeting was pushed back as many creditors are concerned that the airline might not be able to secure a loan without the government’s assistance.
Thai Airways – Stock & Financial Performance
As per TMX, the airline company's market cap is C$ 668.8 million and it offers a return on equity of 243.6 per cent.
TAWNF stock has swelled by 206 per cent over the past week. It soared by 91.5 per cent in the last year and by 178.5 per cent year-to-date (YTD).
At market close on Monday, Thai Airways stock was 416 per cent up from its 52-week low of US$ 0.06 (May 6, 2021).
Thai Airways posted a total revenue of 48.6 billion baht in 2020, as compared to 188.95 billion baht in 2019. The company also suffered a loss of 141.2 billion baht last year.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
