• Revenue up 4% YoY, performance dampened by weakened visitor growth to Thailand
• Proactive strategy to expand India and Indochina in Second Quarter

Bangkok, 13 August 2019 - Asia Aviation Plc. (AAV), a majority shareholder of Thai AirAsia Co Ltd (TAA), has announced its operational results for the first half of 2019 with total revenue of Baht 21,638 million and net profit of Baht 15 million.

While TAA recorded total revenue of Baht 21,637 million and net profit of Baht 24 million as a result of weakened visitor growth to Thailand, appreciation of the Thai Baht and pressured demand on foreign tourists. The company, with a fleet of 62 aircraft, served 11.44 million passengers during the first half of 2019 with a load factor of 86 percent.

In Q2/2019, AAV reported total revenue of Baht 10,015 million and a net loss of Baht 482 million with TAA earning total revenue of Baht 10,015 million and a net loss of Baht 879 million. TAA carried 5.58 million passengers, up 5 percent year-on-year and maintained a load factor average of 83 percent, down 2 points on the year prior due to lower-than-forecast foreign visitation to Thailand. The Thai baht has soared by leaps and bounds against the U.S. dollar this year, well ahead of other regional currencies.

TAA did not add any additional aircraft during the period under review, bringing its total fleet to 62 aircraft. Nonetheless, the airline was able to continue its growth, launching 7 routes; Bangkok (Don Mueang) to Can Tho and Nha Trang in Vietnam, and Ahmedabad in India; Chiang Mai to Da Nang in Vietnam and Shenzhen in China; Chiang Rai to Shenzhen; and Phuket to Phnom Penh in Cambodia. TAA also increased flight frequencies on popular routes such as Bangkok to Roi Et, Khon Kaen and Shenzhen.

In June 2019, AirAsia proudly maintained its triumphant status as Skytrax World’s Best Low Cost Airline for the 11th year consecutive year (2009-2019), affirming the brands world-leading standards and recognition. The reward has motivated TAA to continue its quality assurance commitment as both a sustainable organization and proud member of the low-fare airline industry.

Santisuk Klongchaiya, Chief Executive Officer of Asia Aviation Plc. and Thai AirAsia Co. Ltd said, “Operational results for the first half of 2019 were pressured by the most critical factor, being the slowdown of the tourism industry. This saw less-than-forecast growth in foreign visitors to Thailand, especially from the Chinese market, which is only now showing signs of gradual recovery after efforts to rebuild trust in the market.

Mr Santisuk added Thai AirAsia has nonetheless continued its proactive strategy to expand its route network to destinations in the key markets of Indochina and India, while also increasing flight frequencies on popular routes to establish both balance and stability. The efforts have allowed Thai AirAsia to see a 5 percent growth in passenger numbers year-on-year, surpassing the average growth percentage of foreign visitors to Thailand during the same period.

“We have maintained a leading position in Thailand’s domestic market share and have seen continued growth internationally as a result of being able to further leverage new opportunities from our flight hubs at Bangkok Don Mueang, Chiang Mai, Chiang Rai and Phuket. Positive passenger feedback and weaker competition in provincial hubs provide us with confidence that Thai AirAsia will achieve its 2019 growth targets.”

Thai AirAsia is to continue its strategy as planned in the latter half of 2019, especially in terms of increasing flight frequencies on popular routes and expanding its network to reduce risks from over-dependence on single source flyers. In 2019, the airline is targeting 23.15 million passengers carried, an average load factor of 86 percent. In 2019, TAA plans add 1 energy-efficient aircraft to bring its total fleet to 63 by year-end.