ThaiAir Asia earnings plunge

BANGKOK, 17 August 2020: Asia Aviation Plc (AAV), the major shareholder of Thai AirAsia Co Ltd (TAA) announced at the weekend revenue of THB2,221 million and a net loss of THB1,210.6 million for the second quarter of 2020.

The net loss was predominantly due to travel restrictions, causing a massive decline in demand and the temporary hibernation of its fleet due to the travel ban caused by Covid-19.

AAV and TAA CEO Santisuk Klongchaiya said: ” TAA managed to maintain minimal operations during the quarter, especially on international routes. Total revenue for the quarter decreased by 78% mainly due to the reduction in passengers carried, which was reduced by 95% YoY,  to 283,601 passengers.

During the quarter, international passengers carried by the company plunged by almost 100% compared to the same period last year, while the overall load factor in the said quarter decreased to 52%.

“Total expenses decreased by 63% versus the same period last year, attributable to lower fuel costs and non-fuel expenses. Fuel costs fell as a result of capacity cuts and lower fuel prices, while non-fuel expenses decreased as a result of cost-saving initiatives and eliminating all non-essential spending.”

“We flew at only 8% capacity compared to Q2 2019 due to necessary flight cancellations and restrictions on air travel.  With the situation alleviating and domestic flights gradually resuming in May,  we were able to offer sale promotions such as the Unlimited Pass, to stimulate air travel in the latter half of the year,” Santisuk said.

The company outlook focuses on increasing domestic routes along with the government economic stimulus package and the introduction of new routes such as Chiang Mai-Hua Hin and Udon Thani-Hua Hin and to also leverage on Bangkok’s additional hub at the Suvarnabhumi International Airport to work in conjunction with Don Mueang International Airport.

TAA said it expects to resume its international flight operations through travel bubble schemes with certain target markets, primarily China and other countries that have effectively contained the outbreak. TAA can now sell inflight services effective this month and hopes to follow with food and beverage services soon.