Thai AirAsia records average load factor of 73% in 1Q

Thai AirAsia records average load factor of 73% in 1Q
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BANGKOK (May 17): Thai AirAsia Co Ltd (TAA) recorded an average of 73% load factor in the first quarter of 2022 (1Q 2022), following an easing of travel restrictions and the launch of more international routes. 

In a statement on Tuesday (May 17), Asia Aviation Public Co Ltd (AAV), a major shareholder of TAA, said passengers served in 1Q 2022 also rose by 48% year-on-year (y-o-y) to 1.45 million, propelling the average fare by 7% y-o-y to 1,018 baht (100 baht=RM12.70) per passenger. 

It said the cost of sales and services rose in line with the increase in flights, the average fuel price hiked by 61% y-o-y, and selling and administrative expenses increased by 21%, following commission fees and related fees stemming from the company’s fundraising. 

“Positively, passenger numbers have shown signs of a steady increase for 2Q as the government eases restrictions and entry requirements to sustain international tourist arrivals, allowing TAA to continue to add routes and flight frequencies. 

“For 2022, TAA is targeting to serve 10.4 million guests, with a 78% average load factor, 90% on-time performance rate and to end the year with a fleet of 53 aircraft in operation,” it said.

For 2Q 2022, TAA said it would continually be launching campaigns, emphasising the SUPER+ that offers unlimited free flights across Thailand and Asean throughout the year, free deliveries from airasia food, and flight cancellation coverage. 

Earlier, AAV announced its operational results for 1Q, recording 2.09 billion baht in total revenue and a loss of 2.37 billion baht. 

Meanwhile, AAV and Thai AirAsia Co Ltd chief executive officer Santisuk Klongchaiya said clear signs of recovery in the tourism sector were seen in 1Q 2022, as entry restrictions into Thailand were eased, while the Covid-19 pre-flight testing requirement was removed at the start of 2Q 2022.

“TAA seized the opportunity during this period to resume both domestic and international routes, adding 11,002 flights, up by 32% from the same period last year.

“We plan to launch even more international routes throughout the Asean and South Asian markets, in anticipation of the pent-up demand among foreign travellers to visit Thailand,” he said. 

Recently, TAA commenced flights to eight countries, including 19 routes, covering Maldives, Cambodia, Malaysia, Singapore, Vietnam, Indonesia and Laos. 

“TAA is forging ahead with its robust and sustainable growth plan, gradually adding seats and flights as the situation allows. 

“We believe we will be able to fully fuel the international expansion in the coming quarters, resuming both familiar routes and adding newer choices, including routes to Japan,” he said.