Higher fuel costs dampened operations for low-cost airlines in the first half of the year, but major carriers remain optimistic for the remaining months when the country enters the high season for tourism.
Asia Aviation Plc (AAV), the major shareholder of Thai AirAsia (TAA), reported a loss of 306.1 million baht for the second quarter of 2018 against a profit of 170.6 million baht in the same period last year, with revenue in the period rising 8% year-on-year to 9.3 billion baht.
For the first half, AAV posted 15% growth in revenue to 20.89 billion baht. Net profit dropped 6% year-on-year to 698 million baht.
Santisuk Klongchaiya, chief executive of AAV and TAA, attributed the loss to heightened fuel costs, which rose by 37% since the start of the year. Meanwhile, average air fare fell by 5% during the half, due to market competition and the low season.
TAA reported total revenue of 9.3 billion baht in the second quarter, up 8% year-on-year, and a net loss of 567.5 million baht after a 310-million-baht net profit a year earlier.
TAA posted 20.89 billion baht in revenue for the first half, up 15%, and 1.27 billion baht in net profit, down 6%.
Losses at rival Nok Air Plc widened to 830 million baht in the second quarter versus 650 million baht a year earlier, with revenue dipping 1% to 3.35 billion baht.
For the first half, Nok Air brought in 7.67 billion in revenue, up 2%, with a loss of 774 million baht versus a 909-million-baht loss a year earlier.
Key milestones for TAA in the second quarter included the continuous expansion of both domestic and international charter routes. The three additional routes were Don Muang-Phetchabun, Don Muang-Meixian and Don Muang-Yichang. All began service in April.
Mr Santisuk said operational statistics were still in a satisfactory range in the second quarter, with a load factor of 85% on 5.31 million passengers served, up 13% year-on-year.
TAA did not acquire any new aircraft in the quarter, keeping its fleet at 59 total but still increasing the frequency of flights on four routes departing from Bangkok (Don Mueang) and one route departing from Chiang Mai.
Mr Santisuk voiced confidence that the airline would be able to maintain its leading domestic market share of 33% and continue to seek new opportunities for both the domestic and international networks.
"During the first half of the year we introduced seven routes from Bangkok (Don Mueang) to Ranong, Johor Bahru, Chengdu and Chumphon; from Phuket to Macau and Kunming; as well as from Chiang Mai to Udon Thani, in order to maintain our strategic advantage moving forward," he said.
In the latter half of 2018, Mr Santisuk expects TAA to be able to compensate for higher fuel prices and continue towards its growth targets.
