China Galaxy International: The prospects for Thai International Airlines are overshadowed by the long-term high cost of fuel.

Thanapol Jiratanakij of China Galaxy International stated in a research report that the outlook for Thai Airways International is overshadowed by high fuel costs that are expected to remain elevated for a longer period of time. According to data from S&P Global Platts, aviation fuel prices soared to around $200 per barrel in March, while Thai Airways International's average cost in 2025 is $96.50 per barrel. As the airline only hedges at the crude price level, most of the fuel price increase has not been effectively hedged. Considering the limited ability of Thai Airways International to fully pass on costs through ticket price increases, the brokerage firm has lowered its earnings forecast for 2026-2027 by 22%-36%. The firm downgraded the stock from "buy" to "hold" and reduced the target price from 7.80 Thai Baht to 6.40 Thai Baht.