BANGKOK 15 May 2020: Revenue slumped 19% during the first quarter of the year according to Asia Aviation PlC (AAV), the major shareholder of Thai AirAsia Co Ltd (TAA)
Announced the operating results for the first quarter of 2020 on Thursday the airline company noted that revenue declined 19% to THB 9,399 million with a net loss of THB 671 million.
TAA carried 4.5 million passengers during the period, down 23% YoY with a load factor of 84% due to travel restrictions and reduced demand in light of the Covid-19 situation.
The airline cancelled routes that subsequently decreased its Available Seat Kilometres (ASK) by 30% from last year to 4,834 million.
TAA resumed domestic operations for several major routes 1 May 2020 on the back of regulatory easing measures and an improved situation of Covid-19 in Thailand.
Services which have resumed comply with CAAT health standards and strict safety oversight and limited to essential travel such as business, work and passengers returning home, rather than for tourism. International flights will resume on a limited basis in the near future once border restrictions are lifted.
The company has adjusted its business plans to adapt to the current changing situation, including reducing hedging losses if the fuel price remains low. Senior employees are taking a salary cut, while reserve capital is being sought through soft loans from the government.
The company is reviewing its future investment plans while all significant capital expenditures will be suspended or delayed. New aircraft acquisitions may be suspended this year to maintain a fleet at today’s levels. For 2020, TAA will reduce its passenger target to 11 Million or down 51% YoY, while aiming for a load factor of 80% down five percentage points.