Thai AirAsia’s parent company narrowed its losses in the third quarter, from a Bt531 million ($17.5 million) operating loss in 2018 to Bt482 million in 2019.
Thai AirAsia’s parent company narrowed its losses in the third quarter, from a Bt531 million ($17.5 million) operating loss in 2018 to Bt482 million in 2019.
Asia Aviation’s revenue for the quarter ended 30 September grew 3.8% to Bt9.66 billion. The company attributed this to a 3% increase in passenger numbers to 5.3 million, along with a similar rise in average fares to Bt1,457 per passenger. Load factor was unchanged at 81%.
Expenses were up by 3.1% to Bt10.1 billion, primarily due to higher costs associated with operating more flights, the company’s management discussion and analysis for the quarter show.
Net loss widened by 16.3% to Bt417 million, as it incurred losses on foreign exchange and recorded a Bt78.3 million income tax expense.
During the quarter, revenue per ASK fell 4% to Bt1.39. Unit cost declined 7% to Bt1.49, but excluding fuel, this remained flat at Bt0.98.
On a year-to-date basis, Asia Aviation posted an operating loss of Bt142 million for the first nine months of 2019, compared to a Bt1.03 million operating profit last year.
Total revenue grew 3.4% to Bt31.2 billion while total expenses rose by 7.5% to Bt31.4 billion. This resulted in a net loss of Bt402 million, compared to a net profit of Bt340 million in the year-ago period.
In its outlook, the company says Thai AirAsia is realigning its route network to enhance efficiency and to better meet demand. This includes launching two international routes and adding frequencies on two other services.
The airline is also revising downwards its 2019 passenger target from 23.2 million to 22.5 million, with a load factor of 86%. It also plans to introduce the Airbus A321neos this year, bringing its fleet size to 62 aircraft.
