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AAV Announces the 3rd Quarter of 2019 Operational Results

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Asia Aviation Plc. (AAV), the parent company of Thai AirAsia Co. Ltd. (TAA), has reported its operational results for the 3rd Quarter of 2019 (3Q2019), with a Net Loss of Baht 416.6 million attributed to sluggish tourism growth. The company served a total 5.28 million passengers, an increase of 3 percent year-on-year (YoY).

In 3Q2019, the company achieved a load factor of 81 percent, similarly reported in the same period last year. Also, affirming the company’s sustainable future, the company received its first-time-ever listing on the Thailand Sustainability Investment (THSI) index of the Stock Exchange of Thailand (SET), among Group 3 firms with assets between Baht 10,000 and 30,000 million.

Overall in 3Q2019, AAV posted total revenue of Baht 9,661.4 million, up 4 percent YoY with a Net Loss of Baht 416.6 million. TAA concluded the quarter with total revenue of Baht 9,661.4 million with a Net Loss of Baht 760.6 million.

Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd. (TAA) Santisuk Klongchaiya said, “The operational performance in 3Q2019 is recovering from the previous quarter, reflected by a decent number of tourists, especially from China. The business, however, had remained under pressure from competitive pricing and continual appreciation of Thai baht which negatively impacted foreign travellers’ appetite in visiting Thailand. Nonetheless, Thai AirAsia remains resolute in our desire to grow in all dimensions. We also remain committed to increasing revenue from ancillary services as well as create opportunities through the addition of a new Airbus A321neo by year-end. This aircraft will accommodate more passengers while providing greater fuel efficiencies in line with the company’s capital management approach and sustainability agenda.”

To further drive transformation efforts, the company has introduced leading technology advancements and innovation to provide better service to its guests and improve overall resource management efficiency. Besides, the company transferred call centre services to AVA, AirAsia’s AI-powered and 24/7 automated chat system on November 1, 2019.

“We remain optimistic that through innovation and upgrade of our service standards we will develop new strengths, especially now that we have been listed on the THSI. This affirmation proves that the company’s investment is delivering economic, societal and environmental benefits for our stakeholders. This is also a testament to the additional marks of pride the company received in 3Q2019 including being named Asia’s Leading Low-Cost Airline for the 7th year in a row, and Asia’s Leading Low-Cost Cabin Crew at the World Travel Awards Asia and Oceania 2019,” Mr. Santisuk said.

While Thai AirAsia did not acquire new aircraft in the quarter reported, it continued to grow and create new opportunities in Indochina such as the launch of Bangkok (Don Mueang) – Sihanoukville, Cambodia, and optimised capacity to better accommodate off-season travel.

For the 4th Quarter of 2019, Thai AirAsia will continue its growth strategy and is confident it will experience better results moving forward in the high season, while also receive positive spill-over from the government’s stimulus measures to be implemented on the tourism industry. The company has revised its targets to 22.5 million passengers served for the entire year and a Load Factor average of 86 percent, and also plans to acquire more energy-efficient aircraft to bring its fleet to 62 by year-end.