Optimism from Thai AirAsia CEO as AAV Reports Net Loss of THB 4.7 Billion

Asia Aviation (AAV), the major shareholder of Thai AirAsia, has reported a Q4 2020 revenue of Baht 4,158.6 million and a net loss of Baht 1,114.4 million (1.1 billion Thai Baht equals approximately US$36.5 million).

The loss was partially caused by the impairment on right-of-use assets equating to Baht 1,416 million. Thai AirAsia was EBITDA positive in the quarter, excluding the fuel hedging loss of Baht 799 million.

Domestic flight services performed exceptionally well in Q4 2020 with Thai AirAsia operating 107 percent of the number of seats it did in the corresponding period in 2019, prior to the global COVID19 outbreak.

During the quarter, Thai AirAsia achieved a load factor of 74 percent, carrying 2.81 million guests which was 51 percent higher than in the preceding quarter.

Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation and Thai AirAsia, said, “The 4th Quarter of 2020 revealed strong signs of recovery for the tourism and travel industries, in particular as Thai AirAsia was able to return 70 percent of its fleet to service and saw an uptrend in its load factor with almost 80 percent in November.

"The achievements in Q4 2020 affirm that once the situation improves, Thai AirAsia will be ready to seize the huge opportunity with the public eager to travel again as soon as the situation improves especially with the rollout of vaccination programmes in Thailand and the region.

“Thai AirAsia has also been aligning with the group to develop new business avenues such as food and beverage delivery, cargo business and enhancing the airasia super app into more than just an airline, transforming it into a one stop digital travel and lifestyle super app, with numerous new products and services."

Overall in 2020, Thai AirAsia served 9.49 million passengers with a full year load factor of 75 percent as targeted. AAV posted a total revenue of Baht 16,237.3 million, with a net loss of Baht 4,764.1 million.

Thai AirAsia has continued to develop and expand its customer base. In addition to operations at Don Mueang (DMK), the airline has added a flight base at Suvarnabhumi Airport (BKK) to become the only carrier to operate flights out of both Bangkok airports.

The company has also undertaken a staff reduction exercise by allowing staff to go on unpaid leave or furlough schemes. It has also reviewed its airport operational costs including discounts on landing and parking charges as well as air navigation fees.

"We are confident that in 2021, once the COVID19 situation alleviates and vaccination programmes are widespread, the tourism and aviation industries will bounce back and that international flights will gradually resume by the year-end," said Mr. Santisuk. "Thai AirAsia is ready to boost travel and tourism, and stimulate the economy while maintaining its stringent health and hygiene measures. We are confident of maintaining our market share while expanding in the logistics sector, in particular, our cargo services, in support of the transport of vaccines domestically and regionally. We are in the midst of fundraising to improve the company’s liquidity position including exploring a soft loan, debt, or issuing new shares."

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