'Tony Fernandes can make a big profit after this.'
Maybank Investment Bank Bhd predicts that the 15th General Election (GE 15) will benefit the aviation sector.
Through a note published by Maybank Investment, during GE 13 in 2013 there was an increase in domestic passenger traffic by 18% and 4% for GE 14 during 2018.
Based on that factor, Maybank Investment predicts the upcoming election can be beneficial in terms of passenger traffic in the long term and increased air fares in the short term.
He commented that voters who live in Sabah or Sarawak and who are abroad are expected to return to the peninsula to vote.
It will cause an increase in air fares but that may not last long.
In addition, Maybank Investment also predicts that Capital A will benefit more from GE 15 than Malaysia Airports Holdings Bhd (MAHB).
However, the news about the non-dissolution of the state assembly under Pakatan Harapan and PAS may have an impact on passenger traffic for the upcoming election.
However, Maybank Investment is still seen as maintaining a 'buy' call with a price target of RM7.25 for MAHB and 84 sen for Capital A.
As of this writing, Capital A shares are trading 0.81% lower at 62 sen with a market capitalization of RM2.54 billion.
