Promising tourism outlook profits Thai Airways International

Thai Airways International?s shares gained almost four per cent following the news of forecasted growth in Thailand?s visitor arrivals.

As Thailand returns to normalcy after months of anti-government demonstrations, the Tourism Authority of Thailand (TAT) upgraded its 2011 visitor arrivals forecast to 15.5 million, adding Bt600 billion to the economy.

As faith in Thailand?s recovering tourism industry returned over the past month, Thai Airways International?s shares gained more than 13 per cent, reported the Centre for Asia Pacific Aviation.

However, in the absence of real political reform, investors run the risk of further civil unrest affecting the airline?s future share prices, said Reuters.

?No one really knows when there'll be attacks and gunfire in the streets again. People see more risk," Aberdeen Asset Management Fund Manager Adithep Vanabriksha told the news service.

"We could see some peace and quiet for a while and everything looks fine. But who can tell you what will happen in three, four or five months? There are more questions and concerns," said Adithep, who manages $727 million in Thai assets.

In June, Thai Airways International admitted that its second quarter revenue and cabin load factor would be hurt by the recent turmoil in Thailand.

April?s cabin load factor was 72 per cent but this dropped to 56.8 per cent in May, Thai Airways International President Piyasvasti Amranand told reporters.

Before the demonstrations began, the airline was aiming for a 2010 cabin factor of 75 per cent.

Thai Airways International is due to announce their second quarter results in August.

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