Soaring high: Thai AirAsia’s stunning turnaround in 2024

Asia Aviation (AAV), the proud sole shareholder of Thai AirAsia, unleashed its operational results for the first half of 2024, boasting an impressive financial recovery. The figures are staggering, with revenue from sales and services soaring to 25,279 million baht, marking a 32% year-on-year increase.

AAV’s profit from core operations skyrocketed by a jaw-dropping 1,015%, reaching 1,950 million baht from a mere 175 million the previous year. This leap is underpinned by a 41% year-on-year increase in EBITDA, amounting to 5,003 million baht.

Thai AirAsia’s passenger traffic also surged, with 10.4 million travellers taking to the skies, a 13% increase compared to the previous year. This robust performance culminated in an impressive average load factor of 92%, supported by the expansion of its fleet to 57 aircraft.

Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation and Thai AirAsia remarked that Thailand’s tourism industry was on an uptrend in the second quarter of 2024 compared to the same period last year, with travellers from China, Malaysia, and India making up the top three arrivals to the country.

“TAA was the main airline used by all three nationalities due to its strong network connecting Thailand to China on 12 routes and 11 routes to India.”

Even with the season’s ebb, AAV maintained strong performance, with Q2 revenue hitting 11,485 million baht, a 14% year-on-year increase. Despite a 226 million baht foreign exchange loss due to exchange rate fluctuations in Q2, the company still reported a net profit of 84 million baht, propelled by improving operations.

Thai AirAsia’s average load factor remained high at 91% in Q2, transporting 5 million guests. Domestically, the airline commands a notable 39% market share. It continues to expand its international reach with new routes like Don Mueang to Visakhapatnam (India) and Okinawa (Japan).

Looking ahead, Thai AirAsia is not slowing down. The latter half of 2024 will see the introduction of new routes such as Don Mueang to Phu Quoc (Vietnam) and Hyderabad (India), as well as connections from Phuket to Siem Reap (Cambodia), Chennai (India), and Kolkata (India). These expansions are set to support the company’s goal to serve 20 to 21 million guests this year, boost revenue by 20 to 23%, and grow its fleet to 60 aircraft.

Thai AirAsia’s acquisition of two additional Airbus A321neo aircraft, with a 236-seat capacity, promises to further cut operational costs and fuel consumption, all while providing more revenue-generating seats, reported Travel News Asia.