Asia Aviation Plc. (AAV) Reports Continued Growth in 2Q13 From Strong Operation of Thai AirAsia; AAV Net Profit at Baht 265 million in 2Q13 and Baht 662 million for the First Half of this Year

Friday 09 August 2013 14:50
Mr. Tassapon Bijleveld, CEO of Asia Aviation Plc. or AAV (major shareholder of Thai AirAsia), stated that, in the second quarter of 2013, Thai AirAsia was able to achieve the highly satisfactory results, having revenue of Baht 5,360 million, an increase of 21% year-on-year and net profit of Baht 499 million, a major jump of 109% year on year. He attributed that such growth was mainly from higher carried passengers, which was supported by the continuous expansion of its fleet (an incremental of 5 aircraft from 2Q12) in order to increase frequencies in strong-growth routes domestically and internationally, namely; Phuket, Hong Kong and Wuhan. This had contributed Thai AirAsia to reach its targeted results in the first half of this year, having revenue of Baht 11,389 million, a 22% higher from prior year, and net profit of Baht 1,238 million, a 73% increase from last year.

For the 2Q13 operation, Thai AirAsia had a load factor of 82%, a 3 percentage point up from same period last year (79% in 2Q12) with passengers carried of 2.4 million (versus 1.9 million in 2Q12), increasing 25% which was higher than the capacity growth of 20%. For the first-half of 2013, Thai AirAsia carried 5.0 million passengers, up from 4 million in prior year or a 23% increase, while the load factor recorded 84%, a 1 percentage point higher than the first half of last year.

Also, Thai AirAsia continued to enhance its efficiencies in services, achieving 96% on-time performance as well as in the fleet expansion with the acquisition of 1 Airbus A320 Sharklet wingtip-equipped aircraft (a total fleet of 29 aircraft at the end of this second quarter). All of these developments were made as part of the airline’s mission to offer its passengers with the best service possible.

Mr. Tassapon expects Thai AirAsia to continue achieving its targets in the latter half of the year with the acquisition of 6 more aircraft to end 2013 with a fleet of 35 aircraft as well as 8 more deliveries in 2014. It plans to continuously expand its network with destinations in China and Indochina markets, for instance, new destinations such as Siem Reap and Naypyidaw to be launched by the fourth quarter of this year. Moreover, the airline will also add domestic destinations as well as frequencies to strengthen the network coverage as the leading low-cost carrier in the region, getting ourselves ready for the upcoming ASEAN Economic Community (AEC) and for all upcoming competitions.

On AAV side, the company had reported its 2Q13 results with revenue of Baht 5,360 million and net profit (attributable to parent) of 265 million, contributing to the first half of this year with revenue of Baht 11,389 million and net profit (attributable to parent) at Baht 662 million, all owing to the strong performance of Thai AirAsia who keeps growing strong load factor with the schedule to receive 6 new aircraft in the second-half of this year and with the plan to increase destinations and flight frequencies in the China, Indochina and domestic markets.

“Being the leading regional airline motivates us to constantly develop and stay ahead. Our strategy includes creating the strongest network of both domestic and international destinations in order to offer passengers with the best choice of travel. We’re focusing especially on China and Indochina markets as they are rapidly growing; all of which contributed in continue being the leading airline further” Mr. Tassapon stated.