Thai AirAsia reports Q3 results

BANGKOK, 15 November 2023: Asia Aviation Plc, the sole shareholder of Thai AirAsia, announces its operational results for the third quarter of 2023 with total revenue reaching THB9,898.7 million, increasing 102% year-on-year (YoY) while controlling operational costs effectively. 

Excluding fuel costs, the company’s cost per unit (CASK ex-fuel) decreased by 33% from the same period last year. EBITDA for the period was positive at THB389.1 million, bouncing from a loss of THB601.3 million the previous year. 

Depreciation of the Thai baht towards the end of the quarter resulted in an unrealised loss from exchange rates of THB813.5 million, mostly an accounting loss with no impact on the company’s liquidity. Overall, the company saw a loss in the quarter of THB1,694.7 million, significantly improving from a loss of THB4,050.2 million in the same period last year.

“Thai AirAsia continued to perform robustly compared to the same quarter last year despite being significantly impacted by fuel costs, which rose 61% YoY and 19% QoQ, partly due to a hike in the fuel excise tax for domestic flights. Coupled with the Thai Baht that considerably weakened during the period, these two uncontrollable factors have directly affected earnings for the quarter,” said Asia Aviation Plc and Thai AirAsia chief executive officer Santisuk Klongchaiya.

“Despite the loss this quarter, the company will experience improved performance in the last quarter when we enter the high travel season. The last quarter will also benefit from state policies supporting tourism, such as visa-free schemes for visitors from China, Kazakhstan, India and Taiwan, and more efforts to bolster confidence in Thai tourism. Greater clarity in an appropriate fuel excise tax is also expected soon.”

As for its 2023 targets, the company remains confident it will carry 20 million passengers for the full year, having flown 13.8 million guests in the first nine months. This is on top of an average load factor of 87%, a 90% t on-time performance rate with 50 aircraft out of its 54 fleet in operation by the year’s end. For 4Q2023, Thai AirAsia will adjust its strategy and increase domestic flights by 20% from the previous quarter while adding international routes to Gaya, Guwahati and Ahmedabad in India and Shantou in China to capitalise on international travel growth opportunities.