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Asia Aviation Public Company Limited (AAV), the majority shareholder of Thai AirAsia (TAA), has achieved a groundbreaking milestone in its third-quarter (Q3) 2024 financial performance. The company announced a 55% year-on-year increase in total revenue, reaching an impressive Baht 15,322 million. At the same time, net profit skyrocketed to Baht 3,446 million, a significant recovery from last year’s loss of Baht 1,695 million. With strategic growth initiatives and favourable market conditions, AAV’s stellar results showcase its resilience and dominance in the aviation sector.

Driving Factors Behind the Success

AAV’s remarkable turnaround stems from multiple factors:

High Load Factor and Strong Demand
Thai AirAsia maintained a 90% load factor, carrying 4.9 million passengers during the quarter, a 7% increase compared to Q3 2023. Despite off-peak challenges, including seasonal slowdowns and flooding in northern Thailand, the airline capitalized on growing demand, particularly on international routes.
Optimized Routes and Strategic Expansion
TAA focused on high-yield routes, particularly in lucrative markets like China, India, and Vietnam, while also launching new connections to Beijing, Shanghai, and Tiruchirappalli. Introducing a fifth freedom flight from Taiwan to Japan further reinforced its position in key Asian markets.
Cost Management and Fleet Growth
Lower fuel costs and a robust Thai Baht contributed to stable operating expenses. The addition of two Airbus A321neo aircraft increased TAA’s fleet to 59, with plans to grow to 60 aircraft by year-end, reflecting the airline’s confidence in scaling operations.

CEO’s Vision for Sustained Growth

Mr. Santisuk Klongchaiya, CEO of Asia Aviation and Thai AirAsia, expressed optimism about the company’s trajectory:
“Thailand’s tourism recovery is a major growth driver, and we’re poised to capture this demand with expanded routes and superior service. Our Q3 performance sets the stage for a strong year-end as we approach peak tourism season.”

Mr Santisuk highlighted that average fares increased by 7% to Baht 1,847 per ticket, further boosting revenue. He also emphasized the importance of achieving a revenue per available seat kilometre (RASK) of Baht 1.82, a 12% year-on-year increase.

Strengthening Domestic and International Markets

Domestic Market Leadership

Despite seasonal challenges, Thai AirAsia maintained a 39% market share, the largest in Thailand. Launching new domestic routes, including Suvarnabhumi to Hat Yai and Don Mueang to Lampang, exemplifies TAA’s commitment to addressing regional connectivity needs.

International Market Expansion

TAA’s strategic adjustments in international operations have paid dividends. Key highlights include:

Increased frequencies to high-demand destinations in China and India.
New routes, such as Don Mueang to Phu Quoc, Vietnam, strengthened its ASEAN market dominance.
A remarkable 84% load factor on international flights.

Sustainability at the Forefront

AAV’s commitment to sustainability was underscored by its Thai Aviation Sustainability Day and participation in the Sustainability Expo 2024. These initiatives demonstrated AAV’s proactive approach to environmental responsibility, including discussions on adopting Sustainable Aviation Fuel (SAF) and contributing to Net Zero emissions by 2050.

Highlighting sustainability, Mr. Tony Fernandes, CEO of Capital A, delivered a keynote speech on sustainable mobility, aligning AAV’s vision with ASEAN’s collective environmental goals.

Looking Ahead: A Promising Fourth Quarter

As Thailand enters its peak travel season, AAV expects robust performance in Q4. The company forecasts:

A 20-23% increase in annual revenue from sales and services compared to 2023.
Passenger numbers reached 20-21 million for the year, supported by domestic and international growth.
The fleet will be expanded to 60 aircraft by November, ensuring operational capacity aligns with market demand.

Conclusion: A Blueprint for Aviation Excellence

AAV’s third-quarter achievements set a benchmark for sustained growth, profitability, and market leadership. The company’s strategic route optimization, fleet expansion, and focus on sustainability position it as a frontrunner in Asia’s competitive aviation landscape.

With solid financial performance, enhanced passenger experience, and a commitment to environmental stewardship, Asia Aviation and Thai AirAsia are not just flying high—they’re shaping the future of global aviation.