BANGKOK, Feb 26 (Bernama) – Asia Aviation Plc (AAV), the parent company of Thai AirAsia Co. Ltd., (TAA) posted a revenue of 41.553 billion baht (1 baht=RM0.13) for the year ended Dec 31, 2019, up 3.0 per cent year-on-year.
In a statement, AAV said the company recorded a net loss of 474 million baht for the year.
Chief executive officer of AAV and TAA Santisuk Klongchaiya said the results were negatively affected by the slowdown in both domestic and international tourism industries with factors such as protests in Hong Kong and a stronger baht dampening inbound travel.
The global economic contraction also weighed on tourist confidence, reducing demand for travel by more than expected, he added.
“TAA concluded the year with total revenue of 41.551 billion baht with a net loss of 871 million baht.
“The airline carried a total of 22.15 million passengers, up three per cent y-o-y, with a load factor of 85 per cent, which is similar to the same period of the previous year.
“Besides, new routes were introduced throughout the year resulting in the increase in the average stage length by 4.0 per cent and the available seat kilometres (ASK) by 8.0 per cent y-o-y,” he said.
In the fourth quarter, AAV recorded a total revenue of 10.33 billion baht and a net loss of 72 million baht, due to the sluggish economic and tourism situation.
The company served a total of 5.42 million passengers, down 1.0 per cent y-o-y, and achieved a load factor of 86 per cent, similar to the same period last year, following a reduction in seats capacity to improve flight efficiency to be in line with the travel demand.
TAA also launched direct flights from Chiang Rai to Hangzhou, China, and acquired two new Airbus A321 neo while retiring one Airbus A320, ending the year with a fleet size at 63 aircraft.
For 2020, Santisuk said it would be a challenging year with the outbreak of Covid-19 which affects its business due to travel restrictions and cancellation of flights.
“This has pulled down the number of passengers and our capacity prearrangement,” he said, adding that TAA had implemented preventive measures and fully adhered to safety and public health standards including joint efforts with authorities to build confidence in travelling.
However, he said the company had received an excise tax reduction.
“Together with our proactive situation management especially with serious cost reduction measures, such as negotiating major costs with corporate partners and business partners, including relocating capacity and implementing stringent cost control internally, and with the cooperation of all employees, we believe that we will recover soon and grow stronger," he said.
Santisuk said the company’s key strategy was to be more effective in all dimensions, particularly network planning.
TAGS: Asia Aviation, Thailand, Thai AirAsia, Revenue, Passengers, Santisuk Klongchaiya