Thai AirAsia's 3Q net loss widens to 2.098 billion baht

The airline in Thailand announced a temporary suspension of domestic operations between July 12 and Sept 2 in compliance with the state containment measures and unrealised foreign exchange loss. (Photo by The Edge)

The airline in Thailand announced a temporary suspension of domestic operations between July 12 and Sept 2 in compliance with the state containment measures and unrealised foreign exchange loss. (Photo by The Edge)

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BANGKOK (Nov 13): Asia Aviation Public Company Ltd’s (AAV), Thai AirAsia's parent company, reported that its net loss widened by 23% to 2.098 billion baht (about RM265.87 million) for the third quarter ended Sept 30, 2021 (3Q21) from 1.837 billion baht for the same period last year due to the suspension of its operations following the peak of the Covid-19 pandemic during the quarter.

Revenue for the quarter dropped 81% to 457.5 million baht compared to 3Q20 and total passengers transported during the quarter was down by 96% to 79,767 passengers compared to the corresponding period last year.

“This was in accordance with a decrease of 95% in its available seat kilometres (ASK) compared to the same period last year. The load factor during the quarter was 60% and the airline ended the quarter with 60 aircraft,” it said in a filing with the Stock Exchange of Thailand on Friday (Nov 12).

Asia Aviation and Thai AirAsia chief executive officer Santisuk Klongchaiya said the Covid-19 pandemic was at its peak during 3Q21 after the third wave in Thailand began in April.

“The circumstances impacted AAV’s profitability but the company embraced innovation and opportunities from capital management to finding new revenue sources to remain competitive and viable,” he said.

He said AAV launched airasia food in Bangkok in August as part of a new offering within the airasia Super App, a lifestyle platform that had elevated the business to more than an airline and given it access to a wider customer base, while cargo services were also further developed with the network expansion of Teleport.

Going forward, Santisuk said with the improving situation in Thailand and neighbouring countries in the ASEAN region, Thai AirAsia is looking at very encouraging signs of a recovery from the fourth quarter of this year onwards after tracking a strongly positive response in the domestic travel segment.

“We are very confident that the aviation and tourism businesses are way past the turbulent times.

“Continuing state tourism promotion campaigns, the widening of the vaccination effort and the country reopening on Nov 1 have further increased positive sentiment among Thai AirAsia guests.

“Our 14 billion baht fundraising plan has received approval from the board and should be ready by 1Q22, in time to fuel our competitiveness as foreign travellers return,” he said.

The airline announced a temporary suspension of domestic operations between July 12 and Sept 2 in compliance with the state containment measures and unrealised foreign exchange loss.

It returned to service from Sept 3 under the highest health and safety measures, aligned with pent-up demand for air travel, allowing Thai AirAsia to gradually resume its route network and increase its flight frequencies accordingly.

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