KUALA LUMPUR, Jan 16 2020 : MIDF Research has maintained its ‘buy’ call on AirAsia Group Bhd.
This was in view of positive outlook of the airline as it is set to benefit from the delayed delivery of Malaysia Airlines Bhd’s 25 Boeing 737 MAX.
The research house has kept the target price unchanged at RM2.04 per share.
While Malaysia Airlines has to further wait for its new narrow body jets with a capacity of 160 to 220 passengers, Malaysia AirAsia (MAA) is due to receive three new A321 Neos with 236 seats each, and one A320 Neo that has 186 seats later this year.
MIDF Research believes that this factor will enable AirAsia’s fleet plan for Malaysia to grab some market share from Malaysia Airlines and increase its share to about 60 per cent.
“Moreover, this will stand well with the expected increase in tourism activity in conjunction with the Visit Malaysia Year 2020,” the research house said in a note today.
It added that the positive outlook on AirAsia would enable the airline to have a positive impact on passenger traffic, especially at KLIA2.