Bangkok Airways anticipates 20% revenue growth
A projected 20% growth in passenger revenue is on the horizon for Bangkok Airways this year as the company shifts its pricing strategy in response to a resurgence in demand. The airline’s forward bookings for the Songkran festival and the second quarter are looking strong.
Puttipong Prasarttong-Osoth, the airline’s president, voiced optimism about the Thai aviation industry’s recovery from last year’s slump. This improvement has encouraged Bangkok Airways to aim for a passenger count of 4.5 million with an average load factor of 85%. The anticipated result is a revenue of 17.8 billion baht.
In comparison, the airline’s revenue last year was 14.9 billion baht with nearly 4 million passengers.
Puttipong estimates that almost 40% of the expected revenue will be generated from the European market. The Thai and Southeast Asian market is projected to contribute 31.5%, the remaining coming from China, Japan, and South Korea, which are expected to account for 10%.
Currently, Bangkok Airways serves 12 domestic destinations and eight international ones. The most recent routes, Samui-Chongqing and Samui-Chengdu, have fully resumed operation, providing two to three flights per week to cater to the influx of Chinese tourists.
However, the airline is not planning on opening any new routes until it secures a lease agreement for two more Airbus A319 jets. This acquisition will expand its fleet to 25 by the year’s end, added Puttipong.
Looking at the second quarter, the airline’s bookings are promising with a load factor of 60 to 70% anticipated in April, boosted by the Songkran holiday. Compared to the same period last year, forward bookings for the second quarter have improved by 14%.
Meanwhile, Anawat Leelawatwatana, senior vice-president for finance and accounting, stated that last year’s margin from flight operations improved, but it only amounted to 0.27 baht per available kilometre for an average ticket price of 3,900 baht per seat. He noted that the major expenses this year remain fuel and aircraft maintenance, which are universal concerns across the industry.
Anawat added that the aviation industry last year was burdened by war and geopolitical tension, which impacted the number of European passengers. However, he believes that if tensions ease compared to last year, Bangkok Airways could see an increase in passengers, reported Bangkok Post.
Anawat also stated that while the high-speed railway development at U-tapao airport is facing delays, this should not interfere with Bangkok Airways’ investment in its airport project in the area.
