Thai AirAsia’s first quarter: Revenue skyrockets yet net loss stings

Asia Aviation PLC (AAV), the powerhouse behind Thai AirAsia Co. Ltd (TAA), unveiled a tale of contrasting fortunes in its first-quarter performance of 2024.

Revenue rocketed by an impressive 52%, hitting 13,793.7 million baht, while positive earnings before taxes soared by 78% to 3,094.2 million baht. But amidst the celebratory air, a storm brewed as the company recorded a staggering net loss of 409.1 million baht, pinned on the weakening of the Thai Baht.

To soothe investor jitters, AAV clarified that excluding the forex loss, a core profit of 1,640.3 million baht was pocketed during the quarter, marking a significant turnaround from the previous year’s loss of 203.2 million baht.

Despite the financial turbulence, TAA’s operational wings showed strength. Passenger numbers climbed by 19% year-on-year, reaching 5.5 million, with 50 out of 56 aircraft taking flight. The introduction of new routes, including Hat Yai-Singapore and Don Mueang-Kaohsiung, injected fresh energy into the quarter.

Santisuk Klongchaiya, CEO of Asia Aviation PCL and Thai AirAsia Co Ltd, expressed optimism despite the challenges.

“Our load factor hit a record high of 93%, showcasing our brand’s resilience and market dominance. With strategic marketing and a robust fleet strategy, we’re charting a course for sustained growth.”

Looking ahead, TAA aims to revitalise domestic and international travel, eyeing frequency boosts on popular Chinese routes in Quarter 3. With negotiations underway for increased tourist quotas from India, brighter skies are forecasted for the aviation sector, reported TTR Weekly.

Buoyed by ambitions, TAA sets its sights on a passenger target of 20 to 21 million for 2024, with plans to expand its fleet to 60 aircraft by year-end.

In related news, Thai AirAsia officially announced that it will restart its route between Suvarnabhumi Airport and Hat Yai. Departing at 10.45am from the Thai capital and touching down in the southern Thai province at 12.10pm with flight FD4304, and returning from Hat Yai at 1.40pm, landing back in Suvarnabhumi Airport at 2.15pm with flight FD4305.