BANGKOK, 26 February 2020 - Asia Aviation Plc. (“AAV”), major shareholder of Thai AirAsia Co. Ltd. (“TAA”), has reported its operational results for the 4th quarter of 2019, achieved total revenue of Baht 10,334 million with a net loss of Baht 72 million, decreased over 73% year-on-year (“YoY”) due to the sluggish economic and tourism situation. The company served a total of 5.42 million passengers, down 1% YoY and achieved a load factor of 86 percent, similarly reported in the same period last year, as a result of a reduction in seats capacity to improve flight efficiency to be in line with the travel demand. Besides, TAA launched the direct flight from Chiang Rai to Hangzhou, China, and acquired 2 new Airbus A321neo while retiring 1 Airbus A320, ending the year with a fleet size at 63 aircraft.

Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd. (TAA) Santisuk Klongchaiya said, “2019’s results were negatively affected by the slowdown in both domestic and international tourism industries with factors such as protests in Hong Kong and a stronger Baht dampening inbound travel. Global economic contraction also weighed on tourist confidence, reducing demand for travel by more than expected.”

Overall in 2019, AAV posted total revenue of Baht 41,553 million, up 3% YoY, with a Net loss of Baht 474 million .TAA concluded the year with total revenue of Baht 41,551 million with a Net loss of Baht 871 million. TAA carried a total of 22.15 million passengers, up 3% YoY, with a load factor of 85 percent, which is similar to the report in the same period of the previous year. Besides, new routes were introduced throughout the year resulting in the increase in the average stage length by 4% and the Available Seat Kilometres (“ASK”) by 8% YoY.

Mr. Santisuk added, “For the year 2020, we have had a challenging year with the outbreak of COVID-19 which affects our business due to travel restrictions and cancellation of flights. This has pulled down the number of passengers and our capacity prearrangement. We have also implemented preventive measures and fully adhered to safety and public health standards including joint efforts with authorities to build confidence in travelling. However, the company has received an excise tax reduction. Together with our proactive situation management especially with serious cost reduction measures, such as negotiating major costs with our corporate partners and business partners. Including relocating capacity and implementing stringent cost control internally such as postponing unnecessary expenses and with the cooperation of all employees, we believe that we will recover soon and grow stronger. "

“Our key strategy was to manage to be more effective in all dimensions, particularly network planning. In the past year, we suspended and reduced the frequency on non-profitable routes. We created the travelling demand in the other potential markets, especially in Indochina and the domestic market, where there are little to no competitors. We also remain committed to expanding the ancillary revenue.” Mr. Santisuk remarked.