Drag on Thai Airways' from Flooding-Linked Disruption Likely Manageable

Dow Jones10-01

0645 GMT - The financial drag due to disruptions stemming from severe flooding in Bangkok is likely to remain manageable for Thai Airways, says DBS Group Research's Jason Sum in a note. The flooding prevented half the airline operator's workforce from reaching Suvarnabhumi Airport, which led to delays and cancellations, he notes. The disruption is likely to trim Thai Airways' 2026 earnings before interest and taxes by 230 million baht, which is equivalent to only 0.9% of DBS's 2026 Ebit estimate. Thai Airways also didn't completely suspend its cargo warehouse operations, which could reduce its eventual cargo loss, and its operations are recovering quickly, he adds. DBS maintains its buyrating and 8.50 baht target price. Shares rise 0.9% to 5.75 baht.

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