AAV Announces Operational Results for 2Q2022


  • Strong momentum for continued recovery with revenue increased to Baht 2,774 million, up 157% YoY
  • Latter half acceleration with focus on demand for international routes and domestic travel campaigns

Asia Aviation Plc. (AAV), a major shareholder of Thai AirAsia Co. Ltd. (TAA), announced its second quarter of 2022 (2Q2022) operational results, declaring Baht 2,774 million in total revenue, up 157 percent year-on-year (“YoY”).

This was mainly attributed to a strong recovery in the tourism industry, driven by solid domestic growth and reinstatement of key international routes especially to India, Malaysia and Singapore. Seat capacity in 2Q2022 returned to 33 percent of what it was in the second quarter of 2019 (2Q2019), before the COVID-19 pandemic.

However, setbacks from the doubling of global fuel prices, due to consumption outpacing supply globally, higher maintenance costs, and the depreciation of Baht against the US dollar have all contributed to AAV registering a loss of Baht 4,724 million for the quarter.

Throughout 2Q2022, TAA carried 1.68 million passengers, or an increase of 133 percent YoY, with a load factor of 75 percent, up 14 percentage points compared to the same period last year. Meanwhile, average fare per passenger increased 17 percent to Baht 1,317, mainly due to strong pent-up demand and the addition of a fuel surcharge for international flights.

Ancillary revenue per passenger grew 21 percent to Baht 285, primarily due to an increase in checked baggage and payment processing fees. The airline posted a considerably high on-time performance rate of 96 percent for its average operating fleet of 24 aircraft, which expanded from 15 aircraft for the same period last year. Overall, average aircraft utilization rate for the quarter improved to 8.0 hours per day, from 6.1 hours per day from the same period last year. The airline is targeting 43 out of 53 aircraft in its fleet to be serviceable in order to resume operations and meet increased passenger demand during the latter half of the year.

For the first half of 2022 (1H2022), AAV recorded a total revenue of Baht 4,628 million, up 90 percent, while reporting a loss of Baht 7,094 million attributed to rising fuel costs and aircraft maintenance costs as well as a further baht depreciation. In this period, a total of 3.14 million passengers were flown, up 84 percent YoY, with a load factor of 74 percent.

For the whole of 2022, the airline has a target of carryiang 10 million passengers, a three-fold increase from last year’s 2.93 million, while affirming its leadership as a low-fare carrier for Thais and international travelers.

Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd. (TAA), said: “The improving COVID-19 situation that has allowed many nations to reopen and the recent approval for the resumption of our in-flight food and beverage service on domestic flights were positive signs for TAA to capture increased revenue opportunities, especially in key international markets that we are currently focusing on. By the end of 2Q2022, TAA had resumed 19 routes to eight countries, namely India, the Maldives, Cambodia, Vietnam, Lao PDR, Singapore, Malaysia and Indonesia. For the latter half of the year, TAA aims to introduce a new route to the Japanese city of Fukuoka for the first time ever, along with routes to Nepal and Bangladesh in the interests of providing greater choice and connectivity for consumers and travelers.

“The company has continued to receive support from the financial market, which has bolstered our liquidity and allowed us to return to growth. This reflects the confidence in our strong fundamentals and effective recovery strategy, including the cooperation we have received from our Allstars who have contributed greatly towards this recovery. Our strategy moving forward is to seek out short-term cash flow opportunities while focusing on long-term sustainable growth. We expect to see the positive sentiments to continue for the rest of the year, potentially 2H2022 being our best half-yearly performance in three years.” Mr Santisuk said.

For 2H2022, TAA will launch a number of tactical campaigns including the “Missing Moments” campaign, that reiterate the brand’s quality that sets it out from competitors based on its robust safety standards and industry leading on-time performance. The brand will continue to harness the synergy by leveraging the diverse products and services within the extensive travel and lifestyle ecosystem in the airasia Super App, aside from continually engaging and participating in Government-sponsored campaigns such as the “We Travel Together Phase 4 Extension” program that are aimed at stimulating domestic tourism. Attractive promotions emphasizing on international routes are expected to generate improved yield throughout this year and through to the next.

*Earnings (excluding dividend income, gain/loss on sale of investments, gain/loss on sale of assets, finance income, gain/loss on exchange rate, and gain/loss on derivatives)before interest, taxes, depreciation, and amortization

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