AIRLINE LOOKS FORWARD TO BETTER PERFORMANCE IN H2 WITH FOCUS ON SEIZING DEMAND OPPORTUNITIES

BANGKOK, 13 August 2020 -- Asia Aviation Plc. ("AAV"), major shareholder of Thai AirAsia Co. Ltd. ("TAA") today announced its financial results for the second quarter of 2020, posting a total revenue of Baht 2,221.0 million and a net loss of Baht 1,210.6 million. This was predominantly due to travel restrictions causing significantly reduced demand and the temporary hibernation of its fleet in light of the COVID-19 situation.

CEO of AAV and TAA, Santisuk Klongchaiya said: "With the tourism industry in Thailand and globally significantly impacted by the COVID-19 pandemic, resulting in subdued demand and travel restrictions, TAA managed to maintain minimal operations during the quarter, especially on international routes. Total revenue for the quarter decreased by 78 percent, mainly due to the reduction in the number of passengers carried which was reduced by 95 percent YoY, to a total of 283,601 passengers. During the quarter, the number of international visitors carried by the Company plunged by almost 100 percent compared to the same period last year, while the overall load factor in the said quarter decreased to 52 percent.

"Total expenses decreased by 63 percent versus the same period last year, attributable to lower fuel costs and non-fuel expenses. Fuel costs fell as a result of capacity cuts and lower fuel prices, while non-fuel expenses decreased as a result of cost saving initiatives and eliminating all non-essential spending."

"We flew at only 8 percent capacity compared to Q219 due to necessary flight cancellations and restrictions on air travel. With the situation alleviating and domestic flights gradually resuming in May, we were able to offer a number of sale promotions such as the Unlimited Pass, to stimulate air travel in the latter half of the year," Santisuk said.

The Company outlook is focused on seizing opportunities where there is demand during the second half of the year, including an increase in its domestic routes along with the government economic stimulus package and the introduction of new routes such as Chiang Mai-Hua Hin and Udon Thani-Hua Hin and to also leverage on Bangkok’s additional hub at the Suvarnabhumi International Airport to work in conjunction with Don Mueang International Airport, providing greater choice and convenience for AirAsia guests as well as maintaining our leadership in the market and contributing to the revival of our economy.

TAA expects to resume its international flight operations through travel bubble schemes with certain target markets, primarily Indo-China, China and other countries who have effectively contained the outbreak.TAA welcomes the latest move by the Office of the Civil Aviation Authority of Thailand to ease the restrictions on inflight services beginning with the sale of merchandise from early August which we expect this to be subsequently followed with food and beverage services soon. These would further stimulate TAA’s performance in the second half of 2020.