Thai AirAsia saw a 1,015% profit increase in H1 2024, with revenue up 32% and strong growth in passenger numbers.
Asia Aviation Plc. (“AAV”), the sole shareholder of Thai AirAsia Co. Ltd. (“TAA”), announced its operational results for the first half of 2024 with revenue from sales and services at Baht 25,279 million, up 32 percent year-on-year (“YoY”), while profit from core operations was Baht 1,950 million, significantly increasing 1,015 percent from Baht 175 million. Also, EBITDA was reported at Baht 5,003 million, up 41 percent YoY.
Through the first half of 2024, Thai AirAsia transported 10.4 million guests, a 13 percent increase YoY, resulting in a staggering average load factor of 92 percent. During the period, the carrier also expanded its fleet to 57 aircraft, meeting the demands of both domestic and international travellers as the tourism industry continued to recover.
Mr. Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd., said: “Thailand’s tourism industry was on an uptrend in the second quarter of 2024 (“2Q2024”) 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.”
2Q 2024 was at the tail end of Thailand’s tourism season but AAV was able to maintain a satisfactory performance, achieving a revenue of Baht 11,485 million, up 14 percent YoY. EBITDA in the quarter was Baht 1,909 million, up 5 percent from the corresponding period last year. Due to exchange rate fluctuations in 2Q2024, the Company experienced a FX loss of Baht (226) million but was nonetheless able to report a net profit of Baht 84 million that was mainly supported by improving operational performance.
“The average load factor in 2Q2024 was a high 91 percent with 5 million guests flown. TAA has remained a leader in domestic aviation with a notable 39 percent market share, while in the international market, we launched several new routes, including Don Mueang to Visakhapatnam (India) and Okinawa (Japan), and utilised the Fifth Freedom right to introduce flights from Don Mueang with stopovers in Taipei and Kaohsiung before arriving in Okinawa and Tokyo, Japan,” Mr. Santisuk said.
During the quarter, the AirAsia Group was also awarded the “World’s Best Low-Cost Airline” for the 15th consecutive year by Skytrax, which was based on votes from global travellers. The accolade reinforces the AirAsia brand as trustworthy and boasting world-class standards.
In the latter half of 2024, the Company is set to continue striding forward. In July alone, TAA introduced Don Mueang-Lampang following the Lampang Airport upgrade while also adding international routes such as Don Mueang to Phu Quoc (Vietnam) and Hyderabad (India), and Phuket to Siem Reap (Cambodia), Chennai (India), and Kolkata (India). The Indian destinations resulted from successful negotiations for aviation privileges between Thailand and India carried out by the Civil Aviation Authority of Thailand.
Overall, the Company is maintaining a target to serve 20-21 million guests this year and to grow revenue by 20-23 percent while expanding its fleet to 60 aircraft. The Company has already been delivered an additional 2 Airbus A321neo aircraft, which features a seat capacity of 236 (up 56 seats from the 180-seat Airbus A320) and helps towards reducing operational costs and fuel consumption while improving the environmental-friendliness of AirAsia flights in line with its sustainable development plans.