I tried a bit different kickstart line and it works!

In ubuntu-installer/amd64/boot-screens/txt.cfg:

default install
label install
        menu label ^Install
        menu default
        kernel ubuntu-installer/amd64/linux
        append http_proxy="http://192.168.1.1:80"; 
ks=http://192.168.1.1/kickstart/ks.cfg vga=normal 
initrd=ubuntu-installer/amd64/initrd.gz -- quiet

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https://bugs.launchpad.net/bugs/1575652

Title:
  PXE install prefixes /cdrom to squashfs location, fails to find it

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