BANGKOK, 27 February 2020: Asia Aviation Plc (AAV), the majority shareholder of Thai AirAsia (TAA), suffered a net loss of THB72 million, a decrease over 73% year-on-year during the fourth quarter of 2019.
It blamed the negative performance on the sluggish economy and negative tourism situation. During the entire year, the group’s loss topped THB474 million.
Operational results for the fourth quarter showed revenue of THB 10,334 million, serving 5.42 million passengers, down 1% YoY and achieved a load factor of 86%.
During the last quarter, the airline reduced seat capacity to improve flight efficiency and match travel demand.
TAA launched a direct flight from Chiang Rai to Hangzhou, China, and acquired two new Airbus A321neo while retiring one Airbus A320, ending the year with a fleet size at 63 aircraft.
Asia Aviation Plc and Thai AirAsia chief executive officer, Santisuk Klongchaiya said: “The 2019 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 Thai baht dampening inbound travel. Global economic contraction also weighed on tourist confidence, reducing demand for travel by more than expected.”
Overall in 2019, AAV posted revenue of THB41,553 million, up 3% YoY, with a loss of THB474 million.TAA concluded the year with revenue of THB 41,551 million with a loss of THB 871 million.
TAA carried 22.15 million passengers, up 3% YoY, with a load factor of 85%, which is similar to the report in 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% and the Available Seat Kilometres (“ASK”) by 8% YoY.
