Worst Performer in Asia
Airports of Thailand Plc (AoT) has seen its stock value plummet by over 50% in 2025, marking the steepest decline among global airport operators valued at $100 million or more, as reported on June 17, 2025. The crash erased 460.7 billion baht ($14.2 billion) from AoT’s market capitalization, making it the MSCI Asia Pacific Index’s biggest loser. The downturn reflects a struggling tourism sector and operational challenges at Thailand’s key airports.
Tourism Slowdown Hits Revenue
Chinese Visitors Drop Sharply
A significant reduction in Chinese tourists, down 30% in the first four months of 2025, has crippled AoT’s duty-free sales, a major revenue stream. Safety concerns, amplified by a high-profile kidnapping of a Chinese actor in January, have deterred visitors, leading to a 13% year-on-year drop in foreign arrivals in May. This decline has forced the government to lower its 37.5 million visitor target for the year, signaling tough times for tourism-dependent businesses.
Duty-Free Sales Under Pressure
King Power Seeks Concession Relief
Thailand’s largest duty-free operator, King Power, requested to cancel concessions at five airports, citing dwindling Chinese footfall. These concessions account for 17% of AoT’s revenue, exacerbating financial strain. AoT’s March quarter net income fell 13%, driven by reduced revenue-sharing from duty-free and commercial spaces. Acting President Paweena Jariyathitipong announced plans to hire external advisers to evaluate King Power’s plea, highlighting the crisis’s severity.
Leadership Vacuum Adds Uncertainty
CEO Resignation Impacts Strategy
AoT’s challenges are compounded by the absence of a permanent CEO following Kerati Kijmanawat’s exit in April 2025. The lack of stable leadership has hindered efforts to address declining revenues and restore investor confidence. Analyst Denise Wong from Bloomberg Intelligence warned that without effective measures to revive Chinese demand, AoT’s downward trajectory could persist, further eroding its once-dominant position as the world’s most valuable airport operator.
Economic and Market Headwinds
Broader Impact on Thai Economy
The tourism slump overshadows the “White Lotus effect,” a brief surge in Western visitors inspired by the HBO series filmed in Koh Samui. Thailand’s broader economic woes, including global tariffs and weak consumption, have dragged the SET Index down 20% in 2025, underperforming most global peers. AoT’s stock faced downgrades from seven brokers since its weak quarterly
