Highlights of 2Q2023

• Positive EBITDA* for three consecutive quarters, overturning a loss of (1,046.5) million THB during the same period last year and up 1,740.9 million THB from the previous quarter.

• Net loss of (1,012.5) million THB due to unrealised foreign exchange loss stemming from depreciation of the Baht. Company liquidity and cash flow remains strong.

• Total 4.64 million passengers served at a Load Factor average of 89%. On-time performance rate of 80% as average aircraft utilisation rose to record high 12.9 hours/day. Total 45 aircraft in operation out of a fleet of 54 as of the end of the quarter.

BANGKOK, 15 August 2023 - Asia Aviation Plc. (AAV), the sole shareholder of Thai AirAsia Co. Ltd. (TAA), announces its operational results for Quarter 2 of 2023 (“2Q2023”) with a total revenue of 10,398.5 million THB, up 275% year-on-year (“YoY”) and 6% from the previous quarter. Gross profit for the quarter was 998.2 million THB, up 143% YoY. 

The significantly improved performance is attributed to a robust recovery of the tourism industry, bolstered by the reopening of the China market in the first quarter as well as continuous management of expenses. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased to 1,817.2 million THB but due to the depreciating Baht at the end of Q2, the company saw an unrealised foreign exchange loss and reported a net loss of (1,012.5) million THB for the quarter under review.

Mr. Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd. said: “The operational returns for AAV have continued to be positive, especially in the domestic market where the load factor reached up to 94%. Internationally, China has remained a key strategic market in the region even as its economy recovered at a slower pace than forecast during the second quarter while its visa and passport approvals continued to simplify. In 2Q2023, Thai AirAsia increased its services to China to 108 flights per week, up 67 flights a week from Q1. Good sentiment was also seen in the ASEAN and India markets as the company worked closely with the Tourism Authority of Thailand to plot strategies and campaigns to draw more foreign travelers to Thailand and continue to leverage on TAA’s extensive and high frequency domestic network to boost tourism growth."

For the first half of 2023, AAV achieved a total revenue of 19,641.1 million THB, up 324% from the same period last year. Ancillary services accounted for 19% of revenue from sales and services. While the company has had to report a net loss of (653.1) million THB due to unrealised foreign exchange losses, the net loss improved from (7,278.5) million THB during the same period last year. Seat Capacity has returned to 77 percent from the pre-pandemic levels, with the airline carrying 9.22 million passengers during the period. The airline maintains its target of 20 million passengers carried for the year.

“Operational returns have continued to improve and we have seen a positive EBITDA for three consecutive quarters alongside a healthy cash flow and strong liquidity. We have been working to manage our costs to return to pre-pandemic figures and the second half of the year will offer a crucial opportunity for the company to return to net operational profit for the first time since the pandemic. We have a diverse marketing plan, a growing international route network and are speedily returning aircraft to service from a fleet of 54 aircraft at present, ” Mr. Santisuk said.

During the latter half of the year, the company is aiming to near its pre-pandemic frequency for flights to the China market of 138 flights a week and will be adding routes to Sihanoukville (Cambodia), Kathmandu (Nepal), and Ahmedabad (India). We are confident that tourism will continue to ramp up strongly towards the end of the year to reach TAT’s target of 25-30 million visitors into the country, helping with the overall recovery of Thailand’s economy. The company will continue to work with public and private partners to drive policies such as the excise tax rate for aviation fuel, which has returned to the pre-pandemic rate and is currently being maintained until consideration by the next Cabinet, and those concerning long term goals for the industry, such as the Sustainable Aviation Fuel (SAF) policy.

*Earnings before interest, taxes, depreciation and amortization