Thai AirAsia sees income slip

BANGKOK, 15 November 2017: Thai AirAsia carried 4.93 million passengers during the third quarter (July to September) up 14% year-on-year, but net income was down due to declining fares and increases in fuel and tax costs.

Reporting third quarter earnings to the Stock Exchange of Thailand, last week, the airline’s parent company, Asia Aviation PLc, said Q3 net income reached THB260.9 million down 34% when compared with Q3 2016, which recorded a net income of THB396.6 million.

It blamed the decline on increased fuel costs due to the rise in global oil price as well as the nation’s excise tax on domestic jet fuel prices. Excise tax on fuel used for international flights remained unchanged.

Average fares across Thai Air Asia were also down by 7%, year-on-year, due to stiff competition in the domestic aviation market mainly from Thai Lion Air and Vietjet’s expansion.

Thai AirAsia increased its seat capacity by 13% during the third quarter, while passenger uplift increased 14%. The airline reported a system-wide cabin factor of 85%, up 1%.

During the third quarter the airline noted that international tourists to Thailand rose by 6.43% to 8.8 million compared to the same period last year. East Asian and European visitors accounted for 71% and 14% respectively.

Thai AirAsia ends the quarter with a fleet strength of 54 aircraft, an increase of five aircraft  compared to the third quarter of 2016.

Routes from Bangkok to the Maldives, Jaipur (India), Tiruchirappalli (India) and from Pattaya (U-Tapao) to Hangzhou (China) were successfully launched during the quarter.

Frequencies were added to various routes such as Chiang Mai – Pattaya, Bangkok – Chiang Mai and Bangkok – Phitsanulok.