Business

Thai AirAsia parent posts Q3 revenue of 9.66 bln baht

Syndicated News
Written by Syndicated News

BANGKOK, Nov 13 2019 : Asia Aviation Plc. (AAV), the parent company of Thai AirAsia Co. Ltd., (TAA) posted a revenue of 9.66 billion baht (1 baht=RM0.14) in the third quarter (Q3) ended Sept 30, 2019, up 4.0 per cent year-on-year (y-o-y).

In a statement, AAV said the company recorded a net loss of 416.6 million baht attributed to sluggish tourism growth in Q3.

The company served a total of 5.28 million passengers in Q3, an increase of 3.0 per cent y-o-y, with a load factor of 81 per cent, similar to the corresponding period last year.

“TAA concluded the quarter with total revenue of 9.66 billion baht and a net loss of 760.6 million baht,” it said.

Meanwhile, the chief executive officer of AAV and TAA, Santisuk Klongchaiya, said the Q3 operational performance had recovered from the previous quarter, as reflected by the decent number of tourists, especially from China.

However, he said the business had remained under pressure from competitive pricing and continual appreciation of Thai baht which negatively impacted the foreign travellers’ appetite to visit Thailand.

“Nonetheless, Thai AirAsia remains resolute in our desire to grow in all dimensions. We also remain committed to increasing revenue from ancillary services, as well as create opportunities through the addition of a new Airbus A321neo by year-end.

“This aircraft will accommodate more passengers while providing greater fuel efficiencies in line with the company’s capital management approach and sustainability agenda,” he said.

For Q4 of 2019, Santisuk said TAA would continue its growth strategy and was confident it will see better results moving forward in the high season, while also receiving positive spillovers from the government’s stimulus measures to be implemented in the tourism industry.

“The company has revised its targets to 22.5 million passengers served for the entire year and a load factor average of 86 per cent, and also plans to acquire more energy-efficient aircraft to bring its fleet to 62 by year-end,” he said.

TAA received its first-time-ever listing on the Thailand Sustainability Investment (THSI) index of the Stock Exchange of Thailand, being among Group Three firms with assets of between 10,000 baht and 30 billion baht in October.

Santisuk said the company remained optimistic that through innovation and upgrading of service standards, the company would develop new strengths, especially now that it has been listed on the THSI.

“This affirmation proves that the company’s investment is delivering economic, societal and environmental benefits for our stakeholders.

“This is also a testament to the additional marks of pride the company received in Q3 including being named Asia’s Leading Low-Cost Airline for the 7th year in a row, and Asia’s Leading Low-Cost Cabin Crew at the World Travel Awards Asia and Oceania 2019,” he said. – Bernama

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