Bangkok Airways faces margin squeeze as its operating performance shows no clear signs of improvement, UOB Kay Hian analysts say in a research report. At analyst meeting, management's tone was negative, the analysts note. Management admitted that previously implemented fare-price hike won't be able to offset fuel-cost increase. With the airline likely unable to fully pass on these higher costs to customers, margins might be squeezed from 2Q onward, they say. Also, travel demand remains weak despite the improving air connectivity. The brokerage has a sell rating and a target price of 11.70 baht on the shares, which are 4.9% higher at 15.10 baht. ([email protected])