Asia Aviation (SET:AAV), parent of Thai AirAsia, posted a third-quarter net loss of THB2.37bn ($70mn) as jet fuel averaged $137 a barrel, the company said on 12 November.
Thai AirAsia cut seat capacity by 26% to 4.41 million and raised average fares by 24% to THB2,023 per passenger. Unit costs rose faster. Cost per available seat kilometre climbed 40% to THB2.50, against unit revenue of THB1.96, up 29%.
Revenue from sales and services fell 13% year-on-year to THB8.07bn ($238mn) as passenger volumes dropped 29%. The company recorded negative EBITDA of THB410mn, a core operating loss of THB2.26bn and a foreign exchange loss of THB141mn. The quarterly net loss widened from THB875mn a year earlier.
“In the third quarter, the aviation business was transitioning through the off-peak travel period,” said Phairat Pornpathananangoon, chief executive of AAV and Thai AirAsia. “By prioritizing the reduction of flight frequencies and temporarily pausing unprofitable routes, we redirected capacity to high-demand destinations.”
Domestic passengers fell 25% to 2.38 million after a temporary pause of operations at Bangkok’s Suvarnabhumi hub. The domestic load factor was 78%. International passengers dropped 37% to 987,000 at a 72% load factor, though services to Singapore and Indonesia resumed during the quarter.
For the first nine months, AAV swung to a net loss of THB3.85bn ($114mn) from a net profit of THB727mn a year earlier. Revenue slipped 2% to THB31.65bn ($933mn), and fuel expenses rose 14% to THB12.42bn.
The airline restarted Suvarnabhumi flights to Chiang Mai, Krabi and Phuket in October. It aims to regain a 40% share of the domestic market and plans to restore services to India and other ASEAN destinations. It is working with the Tourism Authority of Thailand on the “Fly Around Thailand, Heal Every Trip” campaign, which offers THB500 off each booking.
The company said it kept flights running through heavy rain and flooding in Bangkok late in the quarter. On-time performance for the quarter was 90%.
The company is pursuing aircraft sale and leaseback deals and talks with financial institutions to shore up liquidity. It targets 54 operating aircraft in December.
Thai AirAsia’s fleet stood at 62 aircraft at the end of September, with 42 in active operation.
