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Thai AirAsia secures 35% domestic market share in Thailand
November 13th 2020
Joint venture, Thai AirAsia, consolidated its position as the largest domestic carrier in Thailand in the September quarter, the LCC’s parent company, Asia Aviation Public Company Ltd (AAV), said this week. Read More »
AAV's financial results presentation showed Thai AirAsia had 35% domestic passenger market share in Thailand in the three months to September 30, up from 33% a year ago. It also reported a 16 percentage point advantage over Thai Lion at 19%, with Nok Air in third place at 18%.
The LCC was upbeat about September's return to Bangkok Suvarnabhumi airport after an eight-year absence. AAV said Thai AirAsia hoped to "steal share" from airlines based at Bangkok’s lead airport.
Load factor on Suvarnabhumi flights had gradually picked up to 70% on the back of several holidays in the fourth quarter and government promotions. Services to Chiang Mai and Nan were LCC’s top performers.
Thai AirAsia operated from Suvarnabhumi when the airport opened in 2006, but moved to Don Mueang in 2012.
AAV posted a net loss of 1.8 billion baht (US$60 million) for the three months to September 30, compared with a net loss of 417 million baht 12 months earlier. Total revenue declined 75%, to 2.4 billion baht, Asia Aviation informed the Stock Exchange of Thailand.
Thai AirAsia carried 1.9 million passengers in the September quarter, down 65% from 5.3 million in the same months in 2019. All were domestic passengers.
Passenger load factor was 65%, an improvement on 52% in the June quarter, but 16 percentage points lower than the 81% achieved a year ago. Its fleet of 62 aircraft had an average utilisation of 6.3 hours a day, a near halving of 12.2 hours a day in the prior corresponding period.
The LCC is targeting 9.3 million passengers for calendar 2020, a downward revision from its 10 million forecast in its June quarter report.
AAV said Thai AirAsia's seat capacity had reached 96% of levels prior to the coronavirus pandemic by the end of September, from 59% at the start of the quarter in July, with more growth expected in the period ahead.
"Thai AirAsia is planning to add domestic capacity above pre-COVID levels in the final quarter of the year, supported by the opening of an operational base in Suvarnabhumi Airport to enhance domestic routes and flights to match government schemes to encourage demand, including cargo services at Don Mueang and Suvarnabhumi Airports," AAV said.
"In addition, the cabinet has approved the principles and guidelines for the Special Tourist Visa (STV) scheme for foreign tourists as a starting point to reopen the border and stimulate the economy."
