AAV Announces Operational Results for 3Q2022 with Revenue Up 969% YoY and 76% QoQ, 87% in Load Factor

Ready to add more international routes for year-end peak season

BANGKOK, 15 November 2022 - Asia Aviation Plc. (“AAV”), the majority shareholder of Thai AirAsia Co. Ltd. (“TAA”), announced its 3Q2022 operational results yesterday, backed by robust growth from significantly increased domestic travel and sustained growth momentum for international flights. 

Total revenue for the quarter was Baht 4,892 million, a 969 percent year-on-year (“YoY”) and 76 percent increase from the previous quarter (“QoQ”). For the record, TAA suspended its operations in over half of 3Q2021 in light of high COVID-19 infections in the nation. Due to high fuel prices, maintenance costs required for aircraft to return to service and the Thai Baht depreciating to a 16-year low at Baht 38 per USD, AAV still recorded a Baht (4,050) million loss for this quarter. However, excluding gains/losses from foreign exchange and derivatives, the loss before interest, taxes, depreciation and amortisation (EBITDA) was Baht (601) million, marking the best recovery performance in seven quarters. To cater to the year-end holiday season, TAA plans to activate more operating aircraft along with the opening of several international routes.

Throughout 3Q2022, TAA carried 2.75 million passengers, maintaining a load factor average of 87 percent, up from 60 percent during the same period last year. TAA maintained its leadership in the domestic market by resuming 62 percent of its domestic flight frequency from 3Q2019 (“pre-COVID-19”) and an on-time performance rate of over 92 percent. Ending the quarter with 58 aircraft, 35 were in service through the quarter with the remainder prepared to meet tourism demand in the coming quarters. The aircraft utilisation rate for the quarter was 9.9 hours per day, the highest rate since 4Q2019, indicating efficient management of flights and positive signs of recovery. Average passenger fare was Baht 1,404, up 7 percent QoQ driven by an increase in the number of international flights.

Mr. Santisuk Klongchaiya, Chief Executive Office of Asia Aviation Plc. and Thai AirAsia Co. Ltd. said: “The aviation, tourism and service industries in Thailand have all observed positive recovery momentum throughout the previous quarter as more countries removed travel restrictions, resulting in the rapid unfolding of pent-up travel demand. TAA had an advantage from the readiness of its fleet and staff and has been able to expand its network across Thailand as well as internationally. By the end of 3Q2022, TAA resumed 27 international routes to 11 countries*, and is now creating new opportunities in 4Q2022 by introducing direct flights to Fukuoka in Japan, Dhaka in Bangladesh and from its Chiang Mai flight base to Hanoi and Da Nang in Vietnam as well as Taipei, all of which are expected to be well received.

“We are proud that in 3Q2022, apart from recovery in our operations, AirAsia’s top quality service was again recognised with the “World’s Best Low-Cost Airline” by Skytrax for the 13th consecutive year while AAV was selected for a fourth year to be listed on the Thailand Sustainability Investment (THSI) list of the Stock Exchange of Thailand, highlighting the success of its sustainable practices and market confidence,” Mr Santisuk said.

Overall, for the past nine months of 2022, AAV achieved total revenue of Baht 9,504 million, up 229 percent YoY, carrying 5.89 million passengers. Revenue from ancillary income was Baht 1,747 million, up 320 percent from the same period last year with income from checked baggage, seating fees and processing fees all up in line with higher passenger numbers. Revenue from this stream was also bolstered by permission from the Civil Aviation Authority of Thailand (CAAT) to resume in-flight food and beverage service starting in July.

For 4Q2022, Mr Santisuk expresses his confidence that the year-end holiday season will provide positive opportunities for the aviation industry by working together with the authorities and tourism agencies. This includes TAA’s participation in the “Discounts All Over the Sky, Fly All Over Thailand” campaign by the Tourism Authority of Thailand, which is offering Baht 300 discounts for domestic flight bookings in the interest of stimulating the tourism economy, as well as proactive efforts to penetrate international markets to attract travellers to Thailand. TAA will maintain its target of 10 million passengers served for 2022, serviced by a total fleet of 53 aircraft by year-end and continue to increase flight frequencies and add more international routes. The carrier has also made preparations to resume flights to and from China in anticipation of further relaxation of COVID-19 measures by the Republic by early next year.

*At the end of 3Q2022, TAA serves 27 international routes covering 11 countries – India, Maldives, Cambodia, Lao PDR, Myanmar, Vietnam, Singapore, Malaysia, Indonesia, China and Hong Kong SAR.