Thai AirAsia X to provide sizeable profit to AirAsia X

KUALA LUMPUR: Maybank Investment Bank Bhd (Maybank IB) expects a 49 per cent-owned Thai AirAsia X  to contribute sizeable earnings to AirAsia X Bhd going forward, thanks to its recently-concluded debt rehabilitation. 

The investment bank said more importantly, the debt rehabilitation means that AirAsia X will equity account for its share of Thai AirAsia X's net profits going forward. 

"This is significant because Thai AirAsia X has never contributed profits to AirAsia X since commencing operations in 2013," it said in a note today.

Maybank IB noted that the fare environment in Thailand is more favourable than in Malaysia and expects it to remain as such in the near term. 

It has raised financial year 2023, 2024 and 2025 estimate core net profit for AirAsia X by seven, 47 and 41 per cent.

Maybank IB maintained a "Buy" call on AirAsia X with a higher target price of RM3.56 from RM3.01.

The next catalyst for the group is upliftment of its PN17 classification, it said.